You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 03
January 2014: -
On 02
January 2014, FII Bought INR 674.05 crs and DII Sold INR 189.75 crs
I gave
enough hint of this fall from past many days. I put a level of 6320 and 6360 as
levels to get sold from top. Nifty got sold just before 6360. In fact it was
saved due to New Year vacation. Yesterday was very first day for global market
to welcome 2014 and bears took the charge.
I always
said this that 6300 levels on Nifty has a history to trap bulls. Is it doing
this time too? I may get answer as ‘yes’. Have a look at the pattern. It slipped
on very 8th day after being choppy at 6300.
Earlier I
said that 6320 and 6350 will be stiff to deal. Now resistance has shifted from
6320 to 6260. In the down side, market will try to find its way towards 6100.
Dot technical support will be at 6120 and 6085 levels.
We are
going to see a gap down of 50-60 points today. We will see big impact on rate
sensitive stocks. Take a note that when Nifty slipped by 1.28% then at the same
time small cap and mid cap indices slipped over 2.50%. This is alarming sign. One
should not be brave to buy the low as low may not come in easier way. Read our
intraday updates as I can try to find few good supports. If not, then many good
shorts.
I gave
Reliance short for readers for free.
Strategy
for Nifty January future – So, 6420 has
played its way. We were short from 6375-6380 levels and took profit only near
6260 -6250 levels, gaining over 120 points. It was ‘call of the month’. I am
already short on 6400 call from 90+ levels which is now below 50. We will see
today’s opening near 6200 levels. We can expect immediate support at 6160
levels only. I am not in hurry to cover short or even adding long. This fall
may not stop easily.
S&P
500
(USA) – We got enough time to ad d
short in fast few days of trades. Now it slipped from 1850 and closed at 1832
yesterday saying ‘welcome to 2014’. I expect more fall towards 1800 levels.
Keep stop loss at 1854 and expect weak closing even for today. We are on top
formation and hence every pullback should be sold with stop loss at 1854
levels. Let us see today’s low as it can give us good idea for the magnitude of
fall.
Regards,
Praveen
Kumar
