You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 07
January 2014: -
On 06
January 2014, FII Sold INR 318.91 crs and DII Sold INR 22.54 crs
It is same
old expected move by FII that they are selling cash market near 6200 levels for
the second day in a row. Put/Call ratio goes at 0.96. This is also showing that
from 6200 to 6150 we should expect a bounce towards 6260 on Nifty. We got the
low at 6170 for two consecutive days in a row.
Meanwhile when
Nifty closed in red we saw mid cap and small cap index closing green. This might
be saying that appetite for bulls are still alive in this market. We saw bounce
from 50 DMA on NIFTY in past also. Past four bounce Nifty came from 50 DMA only
so why cannot be on fifth time.
I have
hope for bounce but I cannot be extra brave looking banking index. Equally,
market is going to focus on Infosys earning which will come on Friday. I am
again quoting same analysis as of yesterday with strong support at 6170.
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. We have possibility of bounce from 6170.
Strategy
for Nifty January future – SGX Nifty is
showing for ta dull opening. 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.
Equally, trade above 6252 will generate a pace for rise. I am considering 6200
as good base to try long as we are very near to support with good risk/reward
ratio.
S&P
500
(USA) – I still feel that bounce
towards 1845-1850 I possible as again from nearer to 1820 levels. We cannot see
bear’s edge immediately as US market has a big backup of bulls from past year. Keep
a stop loss just below 1820 and opt to trade long side in any dip. A negative
close is discouraging me but I feel that opting long on positive session will
be good idea.
Regards,
Praveen
Kumar
