You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 18
December 2013: -
On 17
December 2013, FII Bought INR 249.93 crs and DII Sold INR 96.83 crs
Money flow
goes dull on critical levels. Nifty has broken 50 DMA and closed below the
support of 6150-6145 levels. Logically, we should have a bounce as it was
falling continuously. Things have not gone well for bulls. In recovery it has
failed to cross even 6200 levels. Now, we came on RBI policy today.
It was definitely
not a strong close yesterday. I am scared that Nifty spot may try to test the
levels of 6080 now. Big question is that will we get support even at 6080.
Suppose if it breaks 6080 and sustain then it will open door for 6000.
Some developments
on charts are suggesting and hinting for 6000 levels although it can be too
brutal to write. This market is falling continuously without any support and
refusing to move parallel to global market. I always fear if Indian market
starts underperforming. I took a soft long day before yesterday but exited
yesterday in very first minutes as it opened weaker than SGX cues.
All eyes
will be on RBI policy today. I expect 25 bps hike in repo rate after troubling
WPI and CPI data past week. When Dr. Raghuram Rajan was PM’s advisor, it was
advocating for ‘rate cut’. Now when he became RBI governor, he is doing exactly
opposite.
Visit
again to read my intraday updates as I can update about those only during
market hours.
Strategy
for Nifty December future – SGX NIFTY is
hinting for a soft to positive start. I must say that it has full chance of
opening lower than what SGX Nifty is hinting. I am expecting Nifty December
future to hit 6100 or nearer levels. On higher side, it cannot be safe as long
as it is below 6200 levels. It is better to wait for RBI outcome.
S&P
500
(USA) – FOMC outcome will have great
potential to impact market now. It has
closed on dot near 1780. I consider this as ‘make or break’ levels. Generally,
this kind of day is not easy to trade. If it goes above 1780 then expect a rise
to break the challenge of 1794. If it stays below 1780 then I have reasons to
expect 1750-1740. One must wait to conclude market behavior at 1780.
Regards,
Praveen
Kumar
