You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 24
January 2014: -
On 23
January 2014, FII Bought INR 433.60 crs and DII Sold INR 393.60 crs
First of
all, we saw sell off in US market last night which was driven by Chinese data
and earning analysis. It seems that US investors are deciding about fundamental
valuation of stock after sharp one year rally. Of course, they may demand better
performance. There is nothing like systemic failure. Correction is the part of
the market.
Take a
note that when US market goes for one month’s lowest close; Indian is on one
month high. It is very rare to see. Some adjustment must come and so we may see
gap down. Charting wise Nifty has yet to cross its decisive hurdle of 6360. The
“W” pattern always makes market dicey. It has closed at highest point of the
day and set to open lower. It is important to hold yesterday’s low of 6316.
Although, Nifty can get technical support is only at 6300 to 6290 zone.
It can
never be good idea to short the market after gap down. This kind of wild market
behavior is the part of “W” pattern which is running right now. I still feel
that Indian market can take a bounce towards 6360. Cross over of 6360 will give
us a possible new all-time high again.
What is
concerning is banks and what can rescue Indian market is also banks.
Strategy
for Nifty January future – Gap down is very
much expected right now but Indian market may open better than whatever SGX
Nifty will give at 9 am. After gap down, we will have trading support at
6300-6280 levels. Note down very clearly that a GAP down must fill up to
continue with uptrend otherwise it can be “Bear GAP down”. So, off load all
long if it fail to recover after gap down.
S&P
500
(USA) – I said that wait for the
cross of 1854 to go fresh long. Here, it saved you. We saw a test of 1850 few
days back and it hit 1815 yesterday night. I am saying after every this kind of
dip that do not underestimate the bulls at USA. They are strongest bull of the
world. Call as of now is that as long as it holds 1815, the low of 13th
January 2014 you can again expect another attempt to 1850. US market goes at
monthly low right now so one must avoid any long if it breaks 1815.
Regards,
Praveen
Kumar
