You must read previous articles and watch the given chart
carefully to understand this article completely.
For 28 May 2014: -
On 27 May 2014, FII Sold INR 202.61 crs and DII Sold INR 95.63
crs
It was expected choppy trading session yesterday. I feel that
profit taking is not over yet. We have intermediate support at 7269 levels. As long
as it holds 7269 we can see some pause in the market this is low point of
Monday’s trading when we got sharp selloff in intraday session.
According to Elliott wave theory on hourly chart, Nifty is in
trending wave ‘C’ which is a part of corrective full wave. So we are in wave ‘C’
from 7504 and we have already travelled a distance of nearly 200 points. Logically
end point of wave ‘A’ need to be broken. End point of wave ‘A’ is at 7130. This
is prime reason that I try to be reserve from buying on rise although stock
specific moves are coming to catch for good.
When it comes to buy I found that market message is buying
for mid cap and small cap stocks. I always ignore this message of market. Rally
in stocks having value less than INR 30 are for retailers temptation. This is
the reason that many stocks too sharp jump in past few days which fall in this
criteria. If one is buying this kind of stocks then one must open his eyes for
24 hours. Exit before those start falling.
For today’s trading technical support will be at 7280 and
then at 7260 levels. If it starts trading below 7325 then we can expect the
re-test of yesterday’s low near 7260. On higher side, it will face resistance
at 7400+ levels. I just believe on thing – sell the rise and sell the weakness.
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Strategy for Nifty June
future – It has key
support at 7280 levels which is still 50 points away. On higher side, Nifty June
future will face resistance at 7360-7380 levels. I will be comfortable in
shorting below 7280. Till that time, it will be speculative short call on rise.
Note that we have derivative expiry tomorrow hence be cautious.
S&P 500 (USA) – It took expected turn and closed on
high point of the day. Closing at high point of the day is always bullish especially
when it closes with new all-time high. Long
back, I was expecting this to give us an all-time high in the zone of 19XX. It
took long consolidation to enter in this range but rises now goes beyond limit
of comforts. As long as it is above 1900 there cannot be sense of profit taking
either. I still say, be on side line and wait for good opportunity. Do not be
traditionally bullish.
