You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 09
January 2014: -
On 08
January 2014, FII Bought INR 79.68 crs and DII Sold INR 88.15 crs
Indian
market saw its first gain of the year 2014. It was nominal and has not great
conviction. Nifty locked its day’s high at 6192 which was also below 50 DMA.
Mid cap and small cap indices performed better than Nifty.
Gain came
after 4 days of fall. Now all eyes will be on Infosys earning which will come
tomorrow. I can say that before earning market is in distress mood. Expectations
are not very high from Infosys but optimism has grown a lot.
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. 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?
I still
expect a technical recovery in market without breaking 6145 levels right now. One
should trade long if Nifty remains in positive zone or above 6180 at least. Mid
cap and small cap stocks may give better opportunity than Nifty stocks.
Strategy
for Nifty January future – My analysis
remains same. It may open near 6185 or on flat note. Most important threshold
point for Nifty future will be at 6230 levels. 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) – My analysis remains same. 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
