You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 19
February 2014: -
On 18
February 2014, FII Bought INR 292.23 crs and DII Sold INR 154.83 crs
Test of
6100-6105 was looking obvious but a move towards 50% retrenchment is surprising.
It came at 6142 and this may have invited many temptations for long side. Mid-point
of fall from 6356 to 5933 is at 6145.
It gave up
some gain in last 30 minutes of trades but this does not reflect anything. Now for
today the battle begins for 6145 from bulls’ side and 6100 for bear side. It is
not going to be easy for anyone now. I am also expecting that global market
should undergo a correction after recent rise.
It is also
looking that if Nifty manages to move above 6145 then we can expect a move
towards 6195-6200 levels. It was banking stocks which have finally participated
in rise. Now, we should see if banks will get follow up of buying. If this happens
then only we can expect the cross of 6145.
For
today’s trading, once again be cautious at higher levels and do not buy unless
it goes above 6145. Rest, we can able to decide only during market hours.
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Strategy
for Nifty February future – Based on daily
charts, Nifty future has strength and looking like some steam has left. Well,
hourly chart does not have same view. We should not opt buying unless it goes
above 6160 levels. If we get follow up buying in bank nifty then only we can
expect higher crossover to come. We can expect trading support at 6115-6100
levels. If it breaks 6100 then only it can move on concerning note. S&P
500
(USA) – As expected it came above
1840 but on surprising side it has not shown any sign of weakness yet. Will bulls
surprise market again? May be, I cannot deny. In US market bulls are in full command
from past more than year. I still like to focus on 1850 to 1854 as most crucial
resistance. If it manages to surpass above 1850-1854 then one can expect a run
for 1888-1900 levels. In that case correction will be denied for longer. In the
downside, break point is at 1828, i.e. little too far. I still like to issue
the warning for today-tomorrow and day after tomorrow unless S&P goes above
1854 successfully.
Regards,
Praveen
Kumar
