You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 06
February 2014: -
On 05
February 2014, FII Sold INR 576.20 crs and DII Bought INR 815.23 crs
FIIs have
sold in cash market for fifth consecutive days. Do not worry about these
figures as FIIs are known to do that. We saw two days in a row of small
pullback from lower levels. Day before yesterday it hit a low at 5933 and
yesterday it hit a low at 5962 before rebounding. Now on higher side crossover
of 6035 levels give a rise towards 6075-6095 levels.
It has
generated and redefined two technical supports. One comes at 5960 and other at
5930 levels. Global cues are almost neutral at this point of time. Those have
not recovered like Indian market. I can still repeat that pullback will be
impressive only if it can take out resistances of 6075 to 6095 levels. It is
not going to be easy.
We need a
bull’s gap up. A gap up which should not filled in intraday session. This gap
up is still missing. I feel that as long as rupee is not giving any scary panic
we should be safer on equity price. We picked stocks like Tata Steel and Tata
Motors which worked quite well. Now it is the time to pick stocks like Infosys
which was market leader in previous rise.
If I have
to be worried then I am worried about banking stocks which are not giving signs
of recovery yet.
Strategy
for Nifty February future – Nifty February
future is very likely to see a flat to positive start. So, it has again
rebounded strongly from lower levels yesterday. Technical charts are suggesting
for immediate resistance at 6060-6070 levels. If one has previous long then one
can hold but fresh long should be taken only above 6060-6070 levels. Let us give
some margin to the bulls to test their own strength. Technical support will
come at 6020 levels.
S&P
500
(USA) – Yesterday’s low was at 1738
which was lower than Monday’s low with small margin. On charts it is still on
lower low. I still feel that recovery should come and extend. As long as it
holds the levels of 1738 we can expect a move towards 1768. Note that 1768 will
be decisive for further move. Either it can take a move towards 1800 on the
cross of 1768 or it can fain at 1768 to come at 1710. Let us see what is going
to happen next.
Regards,
Praveen
Kumar
