You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 23
January 2014: -
On 22
January 2014, FII Bought INR 279.45 crs and DII Sold INR 90.57 crs
I said
that 6350-6360 should be a possibility as long as Nifty is staying above 6265. We
got 6350. It was another painful intraday session as rise came very late hours.
It was long and frustrating waiting. This is characteristic of “W” pattern. Remember
that even for “W” pattern rise is possible. Only thing is that rise and fall
may come in uncertain ways. It cannot give any clarity till it move above 6420.
It is
looking like market is turning optimistic before monetary policy which will
come next week. It should be noted that we are just few days away from January
month derivative expiry. It is generating the possibility of short covering on
indices. It can be a massive one. I can again say that it is what I am feeling.
I cannot deny the possibility of reversal too due to “W” pattern. This pattern
is known to hide the reality of market movement.
For
today’s trading, we are likely to see a flat opening. Then it will get good
trading support at 6300. Actually, as long as it is above 6300 Nifty should try
to move higher only. Picking can shift to banking stocks as those may turn
strong now.
Strategy
for Nifty January future – Flat opening in
expected. Then in any decline traders can use any dip to trade long with stop
loss at 6315 levels. We have a possibility of going higher near 6370. If trades
sustain above 6370 then one can expect a possible new all-time high by today
itself. It seems that new all-time high can come by short covering only. We are
near to expiry but looking like shorting is a possibility only on next week.
S&P
500
(USA) – It did nothing much last
night so my study remains same. In my view, buy is permissible above 1854 or
from near to 1820 with stop loss at 1807 or below. 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
