You must read previous articles and watch the
given chart carefully to understand this article completely.
For 19 March 2014: -
On 18 March 2014, FII Bought INR 1011.95 crs
and DII Sold INR 201.97 crs
Higher levels are still offering resistance
on NIFTY. Closing was 60 points off the high and 20 points off the low. It is
important to note that closing came below the opening quotes. All this came,
even after massive buying by FIIs. Technical charts are still showing sluggish
move for the days to come.
India VIX was high by 4% again yesterday. It is
showing a pattern which suggests that it is shaping for sharp rise in coming
days which can cause for price fall on blue chip indices. I am still
considering 6480 as decisive support. We can get some decisive profit taking
only if it manages to close below 6480 for two days in a row.
Above condition still looks tougher but
market tend to satisfy few times in recent days. Momentum indicators, like MACD
is showing for tiredness on chart. Will this tiredness convert to profit
taking? In order to say that also we need trades below 6480. Many aspects are
giving 6480 as decisive support. So, we need to wait for the break below 6480
to conclude for further course of action.
On higher side 6565 to 6575 will be decisive
hurdle. Although charts are still suggesting that 6625 may also be within reach
if it manages to sustain well above 6565-6575 ranges.
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Strategy for Nifty March future – Opening is going
to be stable and positive. It may be near to 6575 levels as hinted by SGX
Nifty. We will see immediate resistance coming above 6600 levels. I am again
expecting day like yesterday where it can open higher, move higher than profit
taking to hit at higher zone. In the down side, it will have support at
6520-6510 levels. If it breaks 6510 then only we can think about decisive
profit taking to hit. Keep your eye on India VIX. It can see some decisive move
on higher side.
S&P 500 (USA)
– S&P
500 continues with bounce and coming closer to previous all-time high again. It
is just 10-12 points away. It is showing power of bulls. It is on another
striking distance. As long as it is above 1854, bulls will control the market. First
achievable target can be at 1883-1884. Crossover can generate target above
1900. Charts are giving obvious caution with negative divergence on MACD. US indices has violated many divergence in
past but one such final divergence will work on one day. Which one can be the
last? It is still beyond the scope of speculation.
