You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 01
April 2014: -
On 31
March 2014, FII Bought INR 942.86 crs and DII Sold INR 611.22 crs
Time has
come for first monetary policy review for this financial year. Market has no
great expectation of positive surprises. We need to follow words coming from
RBI about ‘growth’ and ‘inflation’ forecast for this financial year. Market will
take trading direction based on outcome.
Before beginning
a technical view point I like to inform that India VIX came at 21.6225 now. It has
gained over 16% yesterday. It is also going up with NIFTY. I am very sure that
if fall comes in Nifty then it will come with fall in VIX too. Perhaps, high
VIX is due to the result that traders are expecting more volatility in coming
days.
There is
nothing in technical view point which can suggest any alarm except one. That one
factor is that it is highly overbought. It has gained over 700 points in past
25 – 30 trading sessions. In general, market needs to correct about one-third
of this gain. It is not a compulsion to come but it should come for the good of
this Bull Run.
Market men
are keeping their eye on RBI policy but remember that we are close to earning season
too. I feel that 6750 will be levels of tougher resistance. It is true that
Nifty surpass nearly 300 points after hitting new all-time high for once. As long
as Nifty is above 6640 we cannot find any pullback. Let us see what comes
today.
“Will this
market ever fall?” Market will fall on the day when least number of people
would expect about it.
Please
visit our ‘intraday updates’ to get further updates or to take good advantage
join paid services.
Strategy
for Nifty April future – SGX NIFTY is
showing that it can open near 6770 levels just like yesterday. I suggest not acting
till RBI policy comes. You cannot get any good movement before that. It is not
easily predictable for next move. It is better to ignore this market on higher
side due to over stretch risk. As long as it is above 6700-6680 there cannot be
any signal for profit taking. It means it can recover from lows as long as it
holds 6700-6680 levels.
S&P
500
(USA) – It came under striking
distance for 1884 again. If it stops before 1884 this time too then it will
develop very odd pattern of indecision. It is often called as “W” pattern. We have
two low at 1840 and two tops near 1884. This needs to be final. If not then it
will be beyond the scope of technical analysis to predict for the upcoming
direction. I suggest not participating at these levels. it is inviting trap.
