You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 02
April 2014: -
On 01
April 2014, FII Bought INR 385.66 crs and DII Sold INR 247.88 crs
Nifty has
closed positive for nine trading sessions in a row. If 6500 on Nifty was overbought
then, what can we say about 6730? It is heavily overbought but there is no
single trace of pullback. Even threshold level for pullback is too far which is
at 6640.
Even if we
reduce time frame then also as long as it is above 6675 there cannot be
pullback. VIX is high, NIFTY is heavily overbought but nothing can stop bulls
from buying. If they are buying they are buying strongly. It is a ‘hope rally’ which
has extended too far.
Have a
look at global indices too. When NIFTY goes overbought, S&P goes on
breakout. It is turning a cyclic phenomenon in favour of bulls. Things are too
much but it is not stopping and now focus will shift on upcoming quarterly results.
RBI comes
with hawkish comments which were against market expectation. Still rally
extended. “Will this market ever fall?” Market will fall on the day when least
number of people would expect about it.
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Strategy
for Nifty April future – SGX NIFTY is
showing that it can open near 6770 levels. As long as 6700 holds we cannot see
for pull back. At new all-time high it always looks higher only. In that case
it can try to achieve 6800 levels too. I strongly suggest ignoring index
trading at these kinds of levels. Use levels for reference for other trades
only. These levels are not suitable for buy without technical correction.
S&P
500
(USA) – It finally moved above 1884
and closed on new all-time high. Dow Jones is also on striking distance of
16600 levels. well, if this break out is really coming then US market is all
set to add further 3-4% rally or may be even more. Close above 1884 shows for a
move towards 1950 and then maybe even 2000 levels. It may seem odd but charts
always indicate such elevated targets on big breakouts. This is one such.
S&P 500 never broke 1840 and rally continues. As long as 1840 holds,
S&P will not fall. As long as it is above 1885 it will prepare for 2000!!!
It would be better if Dow Jones would have closed above 16600 levels.
