You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 31
January 2014: -
On 30
January 2014, FII Sold INR 430.20 crs and DII Bought INR 132.01 crs
I always
say that FIIs are known to sell the bottom heavily and buy the top heavily. So,
I am not surprised with past few days of sell figure in cash market. Nifty has
slipped from 6355 to 6027 without even one positive close. Now, Indian market
has perhaps got its all possible bad news. There were no supports from RBI and
not even from FOMC.
What can
happen next is the big question. We have a possibility after yesterday’s last
hour pullback (does not matter how it came). We have a low point on NIFTY at
6027 and then closing at 6073. This is generating a possibility that if market
gives a small gap up today and manages to close above it without filling the
gap then it can be an “Island reversal” pattern. I must say that it is still
just my dream and I want to see it first in today’s closing. It can be ‘island
reversal’ or it can be a ‘cluster island reversal’ pattern.
This pattern
is a possibility and we can get confirmation today. Indian market will be in
serious trouble if this does not happen. So far, globe is suggesting me that
above possibility can be a reality.
I can see
two strong supports in down side. First comes at yesterday’s low of 6027 and
the last one comes at 5972. Pure charting suggests that bulls will be back
strongly if it manages to come at 6110. I see it happening today.
Strategy
for Nifty February future – I talked about a
gap up but SGX Nifty is giving only 3 points right now (7 am). I still believe
that opening will be even better than that. If Nifty February future manages to
spend time above 6115 then we may see a rally towards 6160 levels. Before
applying any bullish target for intraday, it is important to watch 6115 levels
for decisive crossover. In the lower side, 6060 will act as good trading
support.
Shall I buy low or shall I sell the pullback? Please visit my ‘intraday
updates’.
S&P
500
(USA) – It was just the time to buy
as support of 1768 was getting respect. I see more pullbacks to come in US
market before any fresh leg of sell off. We have good possibility of hitting
near 1818 levels in short term. We still need to see closing above 1800 levels.
I stopped under estimating bulls at USA long back and suggesting you to do
same. From past more than one year, it is a lesson that whenever USA market
seen any correction then next rally comes as stronger as the correction. Based on
intensity, do not short as you may not get exit point. Just be long.
Regards,
Praveen
Kumar
