You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 07
March 2014: -
On 06
March 2014, FII Bought INR 1272.93 crs and DII Sold INR 567.10 crs
It has
closed above 6400 for the first time in its life time. Today is Friday and so
it is going to be weekly closing too. If it goes above 6400 then ignore all
negative factors as it will try to move more and more on higher side only. Life
time high is itself a big indicator. Remember, once we saw life time high on
S&P 500 then we saw 80 more new life time’s high.
If it has
to betray to the bulls then it will do it today or it will prepare to move
above 6500-6600 or 6700 sooner. So, question is still same. Will be get weekly
close above 6400? This rally has got fuel by sudden flow of good new, like strong
political hopes, rupee strength, trimming CAD and good global cues.
There can
be two ways to trade today. First is, you short on high and hope that weekly
close will go below 6400. Second is one wait for the break below 6350 to think
about shorting. It is going to be tougher choice for everyone.
Whenever it
hit 6200-6300 levels comes in past I played short. It is looking like we will
get top higher. This is perhaps the first time where market is giving
conviction above 6400. There is one thing that we hit a new life time on December
2013 also. At that time it got sold heavily on top. So this is not a compulsion
that new life time is buying only. This is the reason that I focus on weekly
close above 6400.
If it closes
above 6400 on weekly chart then it will add one more stronger candle on weekly
chart before any sell off. Remember, it
is private banks which can give good support. This market is moving on the hope
of a stable NDA government after upcoming election. Well, I am just seeing
another hung parliament after election. This is just another market euphoria
and wild hopes. Nothing can change so easily for Indian politics.
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Strategy
for Nifty March future – It is not going to
give any sign of profit taking. It is still moving higher. Global cues are also
stronger and suggesting for another higher opening. I have added shorts
yesterday at very last minutes of trade. It is very likely that I will stop out
in first few minutes it. Let us see how it is going to open. It has 30 points
premium in last minutes. One thing is for sure that it is not easier to opt to
forward long either. Dealing intraday will make you unbiased and safer.
S&P
500
(USA) – It has again closed higher
yesterday with another life time high and life time closing. There is nothing
to discuss about negative factors like low volume or divergences. All are there
but finally there is no sign of pullback yet. The way it is moving it is
looking like no stop. As it has failed to give up from higher levels, so now
1850 will act as strong support. As long as it is above 1850 it can try to
surpass 1900. It is scary to trade long either so I am on no trade.
