You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 04
April 2014: -
On 03
April 2014, FII Bought INR 717.39 crs and DII Sold INR 716.57 crs
Finally we
saw a small negative close on eleventh day. This is definitely not looking weak
but definitely on stiff resistance. I had an anticipation that top may emerge
near 6767-6775 levels and we saw high as 6776.75. I am still not claiming that
it is top yet. We need to see two more days to see any good confirmation. One thing
is very clear that buying at these levels may not be safe.
We saw
some selling yesterday and if we get some follow up today then only we can try
to conclude something on indices. If indices are moving like mid cap stocks
then confirmation will also be like same. This is a dangerous situation. This
kind of winning streak always has ugly end. Every long position must be
protected with suitable stop loss and traders should avoid overnight position.
I have
already mentioned yesterday that as long as it is above 6675 we can see rebound
from lower levels. We saw same thing in past 45 minutes yesterday. So with
today’s opening keep your eye on 6675 support levels.
How ridiculous
is this that we have all-time high with VIX running above 22. For today’s
trading we will again see support at 6675. If it breaks 6675 then we will get a
real big litmus test at 6640 levels. I still feel that this trend will intact
as long as it is staying above 6640.
We need to
be clear that this rally is running from 5933 and so far it hit 844 points.
Even if we see 250-300 points fall then also it will be named as ‘technical
correction’ only. So it can eat portfolio in technical correction also. I feel
that nifty can face stiff resistance at 6775 + Levels.
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Strategy
for Nifty April future – After long time
SGX Nifty is showing negative tick in morning hours. There is no great
encouragement for trade on Nifty. As long as it is above 6700 it can see able to
see bounce anytime. It will have stiff resistance at higher side. So, one may
prefer to short rise only. I still suggest ignoring trading on indices as
stocks has much better opportunity. We exploited shorting SBIN, TATAMOTORS and
TATA STEEL yesterday. We may see weakness in banking stocks today. Keep index
as reference point and trade short on weak stocks.
S&P
500
(USA) – S&P 500 is making a Tom
Demark sell signal on daily chart - not saying it’s a top , but just something
to keep in mind. It hit another new life-time high and then slipped but still
not concerning. I still hope for the cross 1900 marks but I prefer to be
cautious as Dow Jones has not crossed 16600 levels yet. We need to have bold
confirmation for further rise to buy. This is surely a technical confirmation
but not bold enough yet. It is looking
like to extend gain above 1900. I am not participating in trade yet.
