You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 14
January 2014: -
On 13
January 2014, FII Bought INR 413.85 crs and DII Sold INR 317.52 crs
Nifty
closed on highest point of past seven trading sessions. Money flow is not
justifying yesterday’s rally specially when mid cap and small cap failed to
close even in positive. Later tonight, U.S. stocks fell sharply, with the Dow
Jones Industrial Average slammed by a triple-digit drop following comments from
Atlanta Federal Reserve President Dennis Lockhart that the U.S. central bank
should push ahead with its efforts to wind down monetary stimulus.
On Friday,
market has closed on weak note that gave bull’s gap up on Monday. Now when it
has closed stronger on Monday it is about to give bear gap down today. This is
just not making sense for those who love to forward trades or holding trades
for few days.
Pure technical
analysis suggests that if it fails to fill up the bear gap down then only
option left. It will again try to test 6140 levels in the days to come. These are
tougher days to trade. We can hope that market should try to react positively
after yesterday’s CPI data which came at 9.87%.
Technical
resistance will be at 6290-6300 levels. If market has to react positive from
low then also it need to hold 6220 levels. Be prepare to see some effect of
political jitters too.
Strategy
for Nifty January future – We saw gap up on
Monday and then rise. Now we are going to see gap down. This is meaningless
trend right now. We can see opening near 6250 levels. If it trades below 6275
after poor start for hours then fall is very likely. If recovery wants to come
then it must and must save 6230 levels. Is it going to save 6230? I have strong
doubt.
S&P
500
(USA) – S&P 500 has broken the
support of 1824 and closed even below 1820. This is suggesting that it has
slipped after almost forming double top which is lower. We saw a high at 1843
and then a fall. Technical suggests that this weakness can continue. It is
looking like to break the levels of 1800 levels. One should not be in hurry. Let
us see the levels of 1824 as resistance first. If it fails then only it is a
short. One thing is looking sure that it can turn sell of rise market any
moment.
Regards,
Praveen
Kumar
