You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 11
April 2014: -
On 10
April 2014, FII Bought INR 342.75 crs and DII Bought INR 13.45 crs
6819, that’s
what we saw yesterday as high and then we got sell off in just last 30 minutes.
Still, there is nothing which we can say as a sign of warning except over
bought ranges. Now we got severe sell off in US market last night which was
expected. I have added few shorts in this anticipation.
VIX comes
very close to 30 levels. In general, this kind of VIX levels is known for
bottom but we are getting top. Pure charting suggests that as long as 6700-6675
holds on closing basis, this market can bounce. So the big question is will we
go below 6675 in global sell off. We are going to get many answers today.
It is
likely to open with gap down now. It may be of 20-30 points. Last year also I have
said about summer sell off which is a much known cycle. It does not mean that
summer sell off will come from exactly 01 May. Few were crying from 01 May last
year saying it is not coming, it is not coming. This kind of sell off may come
on approximate basis.
If correction
comes in Indian market then it will be good. Logically, pre-election sell off can
make a room for result day rally. Every single Asian market is down by more
than 2% except China. From past many weeks I have forecasted for sell off in
NIKKEI. It has broken 14000 levels and preparing for massive sells off.
Today is
last trading day of the week and we have just three trading days for next week.
For today, Nifty will get support at 6750 and then at 6700 levels. Trade in
stock specific way and pick weak stocks for shorting. Do not worry; there may
be too many short candidates.
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Strategy
for Nifty April future – I have added short
on Nifty Future yesterday and carried. My expected target is 6750 and 6710.
Once those come then I will book and will to find a point to buy from low. IIP
data will come after market hour and our market will open directly on Tuesday
only. It involves high in holding position. Nifty April future will open near
6780 and then it will get support either at 6750 or at 6710 only. If you do not
have short then do not add short at lower levels. Indian market is clearly not
as weak as US market.
S&P
500
(USA) – This is what I was
expecting. A bounce towards 1870 and then another brutal sell off. Finally,
S&P 500 closed below 1840 after a long time. It is just the beginning of first
big correction of recent time. It is almost confirm on technical chart that it
can finally end up somewhere near 1730-1740 zone. We have some mini pause near
1800 but that is also little far from here. It is looking like a summer sell
off. It just came little early. Now technical resistance will be at 1840+
levels. Whole global market will start bleeding in very bad way very soon. We
have already added short on S&P yesterday itself.
