You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 06
January 2014: -
On 03
January 2014, FII Sold INR 18.06 crs and DII Sold INR 280.77 crs
FII goes
for sell in cash market in last trading session. I always said this that FIIs
are known to buy top heavily and sell bottom heavily. They have not sold
heavily yet but definitely momentum is missing from them. Indian market will
see lot of impact of political jitters in coming few days, weeks or may be
months.
Few media
reports are suggesting that we may see upcoming general election earlier than
May this year. In my view, market should take this as little positive if
happens. Is it going to be that easy? Definitely not, we need to see the
formulation over the stability of upcoming government. We all know that stock
market wants NDA government this time.
Apart from
politics, we must see the technical formations too. 50 DMA for NIFTY is at
6193. I still feel that market may head towards 6000 and this may happen in
this month itself. Still, we are bound to get few pull backs in between.
Technical
charts are spotting for the support at 6120 and 6085 as it has broken 6260.
Now, as long as Nifty is staying below 6260 we can address those as pull back
only. Friday’s low of 6170 may act as crucial support for today in any weak
trades.
Strategy
for Nifty January future – SGX Nifty is
showing for the weak opening for the day but it may not be as weak. Nifty
January Future should get support at 6200 again for one bounce. It is equally
true that it may see fall again after a mini bounce. I cannot rule out the
possibility for the test of 6100-6050 levels in coming days. I do not think
that one can short any gap down in this market. in all, 6200 is decisive for
the day and hope of recovery. Let us see if it comes.
S&P
500
(USA) – It is beginning of a
correction but mini pullback cannot ruled out. Technically, pullback may not
have big magnitude. It is bound to come as bulls are very strong in US market.
Nearest support is at 1824 levels. I can still feel that 1854 is going to be
tougher to deal. It is giving early sign of weakness with a fall from higher
levels but confirmation is still required.
Regards,
Praveen
Kumar
