You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 22
January 2014: -
On 21
January 2014, FII Sold INR 43.74 crs and DII Bought INR 181.50 crs
6350-6360
should be a possibility as long as Nifty is staying above 6265. Well, above
that “W” formation is throwing the ‘indecisiveness ‘of market. Remember that nifty
is near to 6300 from past more than a month but it has not given those sense of
possible big rise.
This “W” formation
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, we are likely to see a small gap down. It is very important
that it should fill the gap if it wants to move higher. If it fail to fill the
gap then it can again correct towards 6240 and then near 50 DMA which is below
6200.
Technical
charts are still saying that we may get support at 6265 but this has to be tested
during trading hours only. Let us see. Market may remain direction for this
week too.
Strategy
for Nifty January future – Small gap down is
expected after US market sell off from high last night. It was not expected by
Indian market. Well. Nifty January future has trading support at 6300. We can
expect fall only if it start spending time below 6300. So it is very important
to see opening quotes. Although, threshold support is at 6280. It cannot be out
of race for rise as long as it is above 6280.
S&P
500
(USA) – I said, “In my view, buy is
permissible above 1854 or from near to 1820 with stop loss at 1807 or below.”
Yesterday night it hit near to 1850 and then slipped. I can still say prefer to
buy only above 1854 and be safe. If it is ending at 1850 then it can be just
the multiple test of resistance. It is now almost a month near 1850 but it is
not crossing. It is better to wait for the cross above 1854 to add fresh long
if you are bull. Can it trap bulls near 1850? I cannot deny.
Regards,
Praveen
Kumar
