You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 21
January 2014: -
On 20
January 2014, FII Bought INR 384.89 crs and DII Bought INR 310.47 crs
Somehow
Nifty has saved 6240 and bounced to close above 6300 levels. Now we are in side
wise range of 6240 to 6350 levels. We can expect Nifty hitting in the zone of
6350 to 6360 again. Market is on worse possible charting development which will
not give rest on any side. You can look at on daily chart. It is emerging with “W”
pattern.
This “W”
may play its effect in the zone of 6130 to 6420 levels. This might be explanation
that market has reverses in odd way on many trading days. This can continue. “W”
pattern is known for its indecisiveness. Normally, traders should put the pen
down from trades.
For
today’s trading, support is expected at 6265 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.
Downside is
not looking as the case right now. As long as it is above 6265, it may try to take
a move around 6350-6360 levels. I cannot deny the possibility of hitting levels
around 6400+. Do not try to take a view for investment at these levels. Political
parties have no economic agenda before election and this can hurt sentiment in
medium term.
Strategy
for Nifty January future – Premium
fluctuations are showing confusion for direction. We can get good trading
support at 6300 levels. As long as it holds near 6300 levels we can still
believe for some higher attempts. Well, if it settles well below 6300 then we
will see same story and another turning back. So, it can be the day which can either
end up at 6360 or may take attempt towards 6260. Very clearly, it is not clear
to me which way will it choose. Reason is given above that we have “W”
formation on trading chart. Trade less is the key.
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
