You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 23
April 2014: -
On 22
April 2014, FII Bought INR 162.93 crs and DII Sold INR 298.46 crs
I was
expecting this kind of dead day near top. It was completely useless to trade in
index. We have derivative expiry for this month of trade and tomorrow is a
trading holiday. This combination will make trading move interesting. There is
no sign of pullback yet. If pullback comes then it will based on derivative
expiry only.
Based on
technical chart, expiry will favour bulls as long as it holds 6800 levels. If
not too big then also, Nifty may try to come near to 6850 levels as long as it
holds 6800 levels. Choppy trading sessions are bringing sell threshold closer
and higher.
Conclusion
for the day is that we can see support emerging in the area of 6800-6780
itself. As long as it holds above 6800 we may see pressure on short position.
This may drive another rally. I can think shorting below 6800. Any higher
levels are not looking good to short.
I can
clearly say, avoid index trading if it remains choppy. One needs to search
trading opportunity in stocks. We may see some good activities in mid cap and
small cap stocks. It may not be necessarily good for bulls. Some stocks might favour
bears on expiry day.
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Strategy
for Nifty May future – It is trading with
heavy premium of 65-70 points. Above 6900 it will try to add 25-30 points more
on higher side. Key support will be at 6865-6860. To be on safer side, one can
think to trade in short direction if and only if it breaks 6860 levels. It may
be complex to trade today but trading opportunity must be there. Range of 6900
to 6860 may be smaller to say for expiry day. So, we have good chance of
breaking on either side.
S&P
500
(USA) – It was said yesterday that Crossover
of 1872 may generate a possibility for the test of 1885 and then 1900. We got
top almost at 1885 and then a slip in second half. 70% chances is that we got
the top of this cycle by yesterday itself and we should see a moderate to big
red day today. First job for S&P is to close below 1872 and then only we
can able to conclude for further course of action for trade. I say, add short
and hold short. We are heading towards ‘sell in May and go away’.
