You must read previous articles and watch the given chart
carefully to understand this article completely.
For 16 May 2014: -
On 15 May 2014, FII Bought INR 3634.82 crs and DII Sold INR 349.32
crs
Election is over, NDA got clear mandate with flagship of Mr.
Narendra Modi. So, we can say that wants of market has fulfilled. From past few
days, I was mentioning few levels as probable top and those were quoted as
follow -
“Have a look, if we compare this to third wave. 100% @ 7325,
127.20% @ 7569, 161.80% 7878.” I quoted those as Fibonacci projection.
Eventually, Nifty formed a blow up top at 7563.50 which was
very close to the quoted 7569 levels. This is fine so far and things went as
per the road map we have suggested last week. This is new week and big event is
over. Traders must try to forget what has happened and take things are newer
way. It is for sure that optimism may rule for few more days. I can strongly as
that as long as 7080 holds, this market will always in race to form more new
high although it will not so easy.
SGX Nifty is hinting for higher opening which may be due to
over reaction in the last trading session in last hour. 7325 will act as stiff
resistance and do not jump on higher levels to buy. Take stock specific deals. Technical
support will be at 7130 and 7080 levels.
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Strategy for Nifty May
future – SGX Nifty is
hinting for opening at 7320. If this happens then we may not have further scope
for good rise. I was expecting an optimism bounce to come near 7350. Market
mood will remain positive but it deserves a consolidation index. This will push
us to a trading day where index may not move in predictable mood and it may go
choppy after higher opening. Especially when it open near 7320.
S&P 500 (USA) – Somehow, it is saving 50 DMA
support so far. Still, scope of saving this 50 DMA is not so bright. Sooner or
later, it may break levels of 1860 with full force and generate a strong
bearish bar. We have a possibility of such breakdown this week. Hence, opt to
short S&P 500 in any rise. 1885 and 1903 level will act as still
resistance. Close below 1860 will open scope for 1800. I just prefer to accumulate
few short on rise above 1880 itself.
