You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 10
February 2014: -
On 07
February 2014, FII Bought INR 267.26 crs and DII Bought INR 627.42 crs
The good
part and best part of Friday’s trading session was that it has again close with
good attempt of recovery after intraday dip. It is giving opportunity to both. Bears
could cut their short at low and bulls could add long at low.
Now US job
data was also a joy for market. It was not a very good set of numbers but equally
it was not a disaster. Market moved higher it was already oversold. Payrolls rose
less than projected in January and the jobless rate unexpectedly dropped to the
lowest level in more than five years, clouding the outlook for the U.S. economy
and Federal Reserve.
Indian
market should be little easy in finding trend now. Above factor can give us an
opening which should be moderately higher. Higher opening has lots of good
meaning if it is coming to overcome resistance. I have already quoted that 6075
to 6095 would be a still zone of resistance. It was confirmed on Friday’s
session when we hit a high at 6080 and then dropped.
If gap up
able to surpass the resistance zone at 6075 to 6095 then we may be close to
form a ‘cluster island reversal’ pattern which will be good signal for bulls. Nifty
may likely to come near 6200 by this week itself. We have second scenario too. If
this tries to fills the gap then also there cannot be anything to worry as long
as it holds Friday’s low of 6036 levels.
I must
add, “If BANK NIFTY opens in the zone of 10350 to 10400 then do not immediately
jump to assume that resistance has crossed. Wait for pullback to conclude if this
gap up really has strength or now. I am still skeptical about banks in recovery’.
Strategy
for Nifty February future – I said on Friday
also that I want Nifty future to sustain above 6115 to bet for another round of
buying. It hit a high at 6099 and took a dip. Closing was encouraging for me. Now
it is takes an opening above 6100 (as hinted by SGX NIFTY) then also I like to
wait for crossover of 6115 else I may opt to wait for an intraday pullback.
Above 6115 we may see the beginning of good three days of rally which can give
us 6200 to 6225 levels. Well, it will be good if market moves higher without
filling today’s gap. Monday has lot of answer today.
S&P
500
(USA) – What a great way by bulls!!!
Full 60 points jump from the low of 1737 and that’s in just 3 days. It came at
highest point of past 11 trading session. Now we have reasons to expect a pause
or some reaction at 1809 which is 50 DMA resistances. I can again insist to
trade long on crossover of 1809 marks. So, how was the idea ‘not to under
estimate bulls at USA’? I can add a word of ‘caution’ near 50 DMA. If reaction
has to come then it can come in this zone. Fibonacci time frame suggests me a
dead day today.
Regards,
Praveen
Kumar
