You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 09 May
2014: -
On 08 May
2014, FII Bought INR 363.24 crs and DII Sold INR 119.90 crs
Yesterday was
also a dead day with favour towards bears only. Let me explain the chart as I have
given. Firstly, I am considering that rise from 6432 to 6869 was a part of
bulls run which secular trend. In fact, this was most defined Bull Run after
breakout. So, if trend wants to advance then it should not retrench by more
than 50% or 61.80%. The defined zone comes from 6650 to 6599 levels.
What is
the market message now? I need to say that now market is waiting for Monday
evening when ‘Exit poll’ outcome hit. Wave theory is giving support in the zone
of 6650 to 6599 and we are getting an event set up now.
So, it may
be another dead day. There is no reason for the end of optimism on political
outcome. Only question is, “Will NDA get enough seats to form a stable
government?” With small doubt, I need to say that yes, NDA may be more than
magic figure of 272. My speculation gives me 240 to 254 seats to BJP only. Although,
it will beyond the scope of this article to comment more than that.
Technical
charts are still suggesting for crucial support at 6650 to 6640 levels. On
higher side, it needs to sustain above 6740 to 6750 to register further gain
which is way far now. In the downside, break below 6640 will give us levels
like 6599-6580.
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Strategy
for Nifty May future – SGX Nifty is
showing weakness but opening will be better than what it shows. It can take
positive to flat opening somewhere near to 6690 levels. Yesterday’s high point
of 6720 will be crucial point now. Crossover of 6720 will generate something
better. If not then break below 6655 will bring Nifty future near to 6620 also.
Note that premium value has shrink by just 20 points.
S&P
500
(USA) – On Monday I have quoted that
this week will be crucial and if it has to make a new all-time high it must
come by this week. We saw a high at 1889 yesterday and then a sharp reversal. What
is market message now? Very clearly, if it breaks 50 DMA then it will begin its
most awaited ‘May sell off’. This mode may turn out to be very brutal for
market. So, for today, support stand at 1864 to 1860. Today is last trading day
of the week so some decisive moves may come.
