You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 20
March 2014: -
On 19
March 2014, FII Bought INR 1069.74 crs and DII Sold INR 610.96 crs
Outcome of
fed minutes was not very encouraging. They gave further 10 billion cut in bond
buying program which is in line with market expectation. What disappointed the
market was that fed chairperson said about the possibility of rate hike next
year.
We are
close to the end of low interest era in USA and this is a bad news for emerging
countries. A technical chart of Nifty has also shaped in an odd way. It has
traded narrow and giving a hint of wild swing before expiry. It could be on
either side but we are getting reasons to see that swing on negative side.
We have
reasons but it needs to come in an actual term. So, question remains same. Will
we get the break below 6480? We have a possibility of event based ‘bear gap
down’. If today’s gap (no matter even if it comes smaller) fails to fill then
it may turn violent in coming days. Nifty is almost forming a diamond top
formation which generally ends with sharp impulse up or down. If it breaks 6480
then we will see a likely down side impulse which can potentially bring Nifty
towards 6300 in quicker time.
On higher
side 6565 to 6575 will be decisive hurdle..
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Strategy
for Nifty March future – Opening is going
to be negative due to overnight development. 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. Let us see if it takes out 6510 in the process
of gap down. Keep your eye on India VIX. It can see some decisive move on
higher side.
S&P
500
(USA) – So finally, Yellen said
something which market does not like. She speaks out about the possibility of
rate hike in spring 2015. This makes the market nervous and S&P tested the
support of 1850 before last minutes bounce. There can be two technical aspects.
One is one can add long with stop loss just below 1850 or one can wait for the
break of 1850 to short. I prefer the later one. Wait for the break below 1850
and then add shorts. It may test 50 DMA which is at 1828. This is last and
final support.
