You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 08
January 2014: -
On 07
January 2014, FII Sold INR 567.02 crs and DII Bought INR 59.44 crs
We are
just about to enter in earning season. Infosys will present its quarterly
numbers on Friday. Nifty has closed below its crucial threshold support of
6170. Nifty has next logical support range at 6129 to 6120. Today is fifth day from
6359. Nifty is falling from past four trading sessions in a row.
I always
said this that if Indian market starts underperforming then it turns alarming. This
fall is also of same nature. We saw hammering in many blue chip stocks. This selling
was already hinted due to major negative divergence in mid cap index.
I like to
quote few important moving averages. 50 DMA is at 6194, 100 DMA is at 5994 and
200 DMA is at 5917. Ongoing fall may see a halt anywhere near to 6129 or may be
before that. Even yesterday’s low of 6144 may act as support as we saw one
impulsive rise from that point. Later, it got sold at high.
Above fact
generates a pattern which suggests that if Nifty able to stand tall above 6200
then only we can thing about stability in trades. Do you know that Bank Nifty
goes at its 200 DMA now and its 100 DMA is at 10600 levels?
Let us see
if it can come. One must focus on mid cap stocks for trades as many stocks like
SUZLON, SINTEX looks good.
Strategy
for Nifty January future – We should get
little positive opening. Most important threshold point for Nifty future will
be at 6230 levels. Global market mood
may try to stop selling in India too. In the downside 6170 will act as
threshold support. If it breaks threshold support of 6170 then you can expect
6140 in quicker time. Crossover of 6230 will invite short covering rise.
S&P
500
(USA) – I have said yesterday I feel
for a bounce towards 1845-1850. We got 1840 so far. I still feel that it may
extend near 1850. This is another typical pullback near top to retest top. It is
like forming double top. For bull’s point of view, it may surpass 1850. Bulls
are doing their job best at USA only. I say stay long as long as it holds 1832.
ON higher side 1845-1850 is still under reach.
Regards,
Praveen
Kumar
