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read previous articles and watch the given chart carefully to understand this
article completely.
For 29
April 2014: -
On 28
April 2014, FII Bought INR 287.98 crs and DII Sold INR 550.89 crs
We saw
three day drop in a row in Indian market. This is a normal and expected profit
taking before election result. I still believe that ‘optimism’ will come to buy
this market from any lower levels. This level can be at 6700 or 6650 or
anything levels, that remains different question.
If we are
in real bull market then today should be litmus test for bulls. We may have a
chance for rise on forth session after three days of fall. Nifty has closed
below 20 DMA after more than two months. This will keep stock price under
pressure but recovery is designed to come. Retrenchment suggests that Nifty
either may recovery from 6700 or from 6650 for once.
We have
trading holiday tomorrow. This means that weekly bottom will come today or max
by Friday. I suggest that one should avoid shorting this market on lower side. We
cannot say that election optimism will end any sooner.
For
today’s trading, 6700-6650 will offer good trading support. We can expect a trading
bounce from lower levels. Let us see how it comes or will this come or not.
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Strategy
for Nifty May future – SGX Nifty is
hinting for a higher start by 20 points right now. Technical charts are
suggesting that as long as 6740 holds, this market can bounce. Better strength
is expected only above 6820 levels. Suppose, if it crosses above 6820 then one
can expect a quick fire move towards 6900+ levels but those may come next week.
If it comes this week then it will surprise me. Still, it is not a good idea to
short near 6740 without decisive break.
S&P
500
(USA) – As expected, it is hitting
1880 levels. As long as it is staying above 50 DMA i.e. 1858, we can say that
market is in bull’s hand. I feel that cross above 1885 will again generate the
possibility of 1900+ levels. So far, nothing is bad for bulls. We can hope rise
and more rises. Scope is not there for any shorting activity. We may see a top
sooner and a sell off will also hit in May month but so far, it looks like we
may have some more rise. We can trade long but be cautious at higher levels and
do not forget to add short.
