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read previous articles and watch the given chart carefully to understand this
article completely.
For 25
March 2014: -
On 24
March 2014, FII Bought INR 1465.62 crs and DII Sold INR 770.39 crs
Technical
analysis says that rally should be innocent until proven guilty. So far, this
rally is still innocent.
So diamond
pattern goes in favour of bulls. It is just shy near 6600 levels. FII buying
and election optimism continues. It is important to note that banking stocks
has dominated the trend.
As it has
closed in an uncharted territory so theoretically there is no resistance. Direction
of all crucial moving is up as of now. Global cues are not very supportive now.
DAX lost more than 1.50% yesterday. NIKKEI is near to next breakdown which can
push it below 14000 marks by this week. Well, it has yet to give sell signal.
20 DMA is
at 6417, which is nearest support. This is suggesting that market goes on over
stretched mode. We are just two days away from derivative expiry of March month
series. I still feel that upcoming two days may invite some profit taking.
Indian rupee is almost at 8 month’s low right now against USD. This is key
driver of recent days rally.
For
today’s session, do not expect significant weakness as long as it stays above
6550 levels. Initial reactions should be avoided for trading.
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Strategy
for Nifty March future – Flip flow breaks
higher and it goes above 6600 levels. As long as it is above 6570, we cannot
expect anything negative. It may open little lower due to global cues but technical
charts are still stronger. Equally, I will not prefer to buy this rise. Below 6570
we may see some profit taking. It is better to switch actions on April month series
now.
S&P
500
(USA) – It hit 1850 again yesterday.
50 days moving average came at 1832 now which is logical support. If it breaks
1850 then it can invite the test of 50 DMA. More than that, 50 DMA is now
flattening out. Will swing continue in the range of 1884 to 1850? It may be but
now I am not giving biasing to anyone. My feeling is that time has come. This is
60th month of rally in USA. One obvious reaction may come and test
50 DMA. If this has to happen then today is best day to do so. Technical
resistance is at 1867 for the day. above which it can again try for 1884.
