You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 30
December 2013: -
On 27
December 2013, FII Bought INR 116.06 crs and DII Sold INR 207.15 crs
There is
no great volume in market yet. It seems that market is still on expected
holiday mood. There were some good news aftermarket hours. FIPB cleared
Vodafone and Tesco proposal. These are the damage control steps against long
policy paralysis. FM claims that India will meet its CAD target and it will be
lower than expected.
We may see
some better opening due to above reasons. I am not sure that those can be
enough reasons to get a direction in market. India market is just waiting for
fresh cues by FII to get a direction. Even US market is also trading with dull
and holiday mood.
VIX goes
above 15 now. I am already sensing that it can either move towards 20 or may
try to settle near 12. We will see some decisive move by next week only. Small cap
or mid cap indices are still trading not alarming. These might be close to give
a caution signal. Banking index is looking alarming from higher levels. Are we
close to a melt down? Keep your eye on currency market too.
For today,
technical resistance will be at 6324 and 6350. Below 6280-6260 we can see some
drag towards 6200. I still believe that if fall comes it can be little bigger
in magnitude. It may again slip from higher levels for today also. Let us see
how year closes for Indian market. Nifty closed at 5905 on 31 December 2012.
Visit
again to read my intraday updates as I can update about those only during
market hours.
Strategy
for Nifty January future – It should open
higher back by off market news flow. I still believe that it may not sustain at
higher levels. It will have resistance at 6400 levels. In the lower side it
will see threshold support at 6310 levels. If it breaks 6310 then only we can
get some decisive moves on trades. It may not be impressive for trading if it
holds positive.
S&P
500
(USA) – It remains unchanged and so
my study remains same. It gives me a sense that profit taking may start near
the resistance of 1854. What can be magnitude of correction? It depends on market condition. I said this in
past also that world’s strongest bulls are at USA. Technical charts are
suggesting that now traders should short any rise with stop loss at 1854 for
2-3% pullback at least. If it crosses 1854 then it will again prepare for another
higher level like 1880!!!
Regards,
Praveen
Kumar
