You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 20
January 2014: -
On 17
January 2014, FII Bought INR 75.27 crs and DII Bought INR 141.65 crs
I have
already quoted that once mid cap and small cap indices starts underperforming
Nifty we will see weakness. Even on Friday, we saw small cap indices falling
over 2%. It seems that investors and traders are off loading their riskier
portfolio. I think that market is doing right and moving on suggested road map.
I was not
convinced with Bank Nifty and it has also slipped more than Nifty. Key support
for BANK NIFTY is at 10800-10780 levels which is just 120 points away. A break
down situation is very likely on banking stocks. This week may not be bad for
the world but it can turn disaster for Indian banking stocks.
For
today’s trading, support is expected at 6250-6240 levels first. If it breaks
then we can see more profit taking and a move towards 50 DMA which is at 6193
right now. I can sense that fall may not stop even at 50 DMA. We may see a
final touch towards 6140 levels too.
If Nifty
starts settling below 6240-6230 levels then we have lesser chance for rebound
either for this week. I strongly advise a strong word of caution. Whatever price
we are seeing on technology stocks are also too scary as those are way higher.
Strategy
for Nifty January future – SGX NIFTY is
hinting that we will see opening below Friday’s low of 6247. If this happens
then market may not have any good chance to rebound sooner. We should see it
moving lower towards 6200-6190 levels. Domination may come from weakness in
banking stocks. I am already short from higher levels and I will prefer to hold
my shorts as long as weakness sustain this market.
S&P
500
(USA) – from last more than a year
US market turn on Moving averages support, not on technical indicators. We have
seen too many negative divergences on MACD and RSI but all failed to make
impact. It is true that someday it will hurt US market badly but those days are
away as long as it is above 50 DMA. For S&P 500, 50 DMA is at 1807. In my
view, buy is permissible above 1854 or from near to 1820 with stop loss at 1807
or below. I can still sense a newer life high this week but I am not opting
long.
Regards,
Praveen
Kumar
