You must read previous articles and watch the
given chart carefully to understand this article completely.
For 10 April 2014: -
On 09 April 2014, FII Bought INR 1043.86 crs
and DII Sold INR 463.78 crs
It gave another shoot up to test even 6800+
levels on Nifty. It was very expected after a bull’s gap up. Any market which
is touching life time high and staying near to that is bullish sign. I am
dealing long side but definitely thrilled. It is not meaningful to talk about
any target. Remember that it is not easy to stand against odds. Indian market
has entered in a phase where it can opt for rapid moves.
VIX is near to 27 and there may be so many
divergences. This is highly overbought market. All facts are true but first
priority goes to price. It is only the price which pays to a trade. This price
pattern of stocks is up. I feel that lot of shorts might have added in the
anticipation of correction in past one week. I was also one such. I exited my
shorts in the morning hour and added long and may be too many longs. Idea was
simple, cover your short before others do and then opt long to take advantage
for short covering.
It does not mean that market is comfortable. In
fact it is going to be more complex now. In pure charting term, Nifty can stretch
towards 6910-7000 levels as long as it is staying above 6700. I am taking this
this market in a step wise manner as I know that this market will punish the
bulls when they will least expect about it.
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Strategy for Nifty April future – I still ignore
trades on Nifty future. If I have to be bullish then I must pick a index which
has better intensity so I picked Bank Nifty yesterday to play long. It gave
good range to trade yesterday. For today’s trading you can expect soft opening.
It is a buy as long as it holds 6800 levels. If it breaks 6800 then one must
avoid long. Trade long if it spends time above 6850. I still suggest that pick
strong stocks rather than trading index. Take this as a reference. I cannot
give any importance of positive news flow. It used to come after every rally. I
must say that above 6850 Nifty future can go as big as 6900 plus levels.
S&P 500 (USA)
– I
was expecting this bounce near 1860-1870 zone and we got this. US market
remains most disciplined one for technicians. We got closing at 1872. I can
still say that there may be little more bounce from here too. It forces me to
say that 1884 may again come in to play. It is going to be interesting to see
tonight. Question is will it give up from higher levels tonight. Remember, last
night it has closed at highest point of day after a real sound closing. I always
say to focus on the second day of recovery to conclude about follow up trades. Technical
support is only ay 1840.
