You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 27
January 2014: -
On 24
January 2014, FII Sold INR 230.96 crs and DII Sold INR 78.05 crs
Asian
stocks declined, with the regional benchmark index heading for its steepest
three-day loss in five months, as concern that the global economic recovery is
faltering spurred investors to sell riskier assets. US market also got the sell
off on Friday night with the same reason.
It was
mentioned on Friday that if it failed to fill up the gap down then it has good
chances for dip. It closed on horrible note. Now it is ready to take a gap down
of 100 points. It can never be easy to trade after this kind of gap down. Next key
support will be at 6140-6130 levels. If it breaks then it can hit 6085 levels
too.
We have
RBI’s monetary policy review tomorrow and derivative expiry this Thursday. It is
generating a phase of news based trades for few more days.
What is
concerning is banks and what can rescue Indian market is also banks. I am again
mentioning that charts are saying for a steep fall on Bank Nifty if it breaks
10800 on closing basis. It is likely to come now.
Strategy
for Nifty January future – It is going to
give second day of gap down and this time it can be bigger than 100 points. If you
do not have shorts then perhaps I suggest you not to touch this market for
shorts. It is a general rule to avoid trades after wild gap up or gap down. Technical
support will come in the range of 6140 to 6130. You can expect Nifty January
month future to run in discount too. Shall I buy low or shall I sell the
pullback? Please visit my ‘intraday updates’.
S&P
500
(USA) – It has opened on Friday with
gap down near 1815 and broken immediately. Then, selling continues as expected with
rapid pace. It was biggest weekly drop of past more than two years. 1768 is
going to be likely support if it breaks 1784 right now. This is perhaps first
time after a year that bulls at USA are at back foot. I still suggest not to
under estimating them. If follow up of selling comes then only we will see
fresh fall. It has already slipped from 1847
to 1790 in three days. Call is – Do not short without any pullback.
Regards,
Praveen
Kumar
