You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 23
December 2013: -
On 20
December 2013, FII Bought INR 990.19 crs and DII Sold INR 247.55 crs
It was a
great trade for weekend. Nifty shoot up above 6230-6236 levels and goes higher
by 50 points more. Now, it is looking to hit 6320 levels which is at the
distance of 50 points from here. As long as Nifty is above 6230 support levels,
we can expect strength and attempt for a move towards new all-time high. Why India
should left when world is enjoying “Santa Rally”.
It is
equally true that 6300 levels had always formed a trap for bulls in past. Good thing for this time is that it is
bouncing again without breaking 50 dma. We saw rise in Reliance. Indian market
has a history of topping out with rise in Reliance.
I will be
cautious at higher levels but I will prefer to trade long. We can expect good
activity in high beta mid cap banks now. Auto, technology and pharma stocks are
looking good for the day.
In short,
trade long as long as 6230 holds. One thing is clear that Indian market is not
moving like other global indices. We are on long term ‘inverse H&S pattern’
but not breaking higher on decisive basis which most global indices has done
six months back.
For the
day, I am expecting 6320 as first target and if it sustain at 6320 then you can
expect good rise towards 6360 also. Pure, charting basis, crossover of 6230 may
result 6500 also.
Visit
again to read my intraday updates as I can update about those only during
market hours.
Strategy
for Nifty December future – It is likely to open
with some strength. Nifty future is almost running with small premium value
near to derivative expiry and it has some hope of short covering rally too on
expiry week. Technically, 6360 may be on test. Higher levels will not going to
be stable. Immediate trading support will be at 6280. Expect 6360 as long as it
holds 6280 levels. Do not short this market unless some real big sign of
troubles comes. Nothing looking like that. We passed the levels of sign of
worry.
S&P
500
(USA) – It goes above 1814 and
settled well above those. So, this can be surely named as “Santa Rally”. Logically,
it is an opening for a move towards 1854 levels. Still 3% more rise has left
for this month. 2013 is a historic year for bulls. It opened on strong note and
remains strong throughout the year. It has started from 1470 and running at
1820 now. I am considering 1814 as new crossover and breakout point for bulls.
Regards,
Praveen
Kumar
