You must read previous articles and watch the given chart carefully
to understand this article completely.
For 03 June 2014: -
On 02 June 2014, FII Bought INR 2977.62 crs and DII Sold INR 148.81
crs
We saw one sided gain in all indices yesterday. We have RBI
monetary policy today. To be on fair side it will be very unfair to expect rate
cut. We need to note that monsoon forecast is ‘below normal for this year which
is looking correct so far. This can add fuel to inflation and it will give
tough time to RBI governor. It is only the Modi magic which makes people
optimistic.
I am little uneasy with Nifty hourly chart. This rally may be
on halt either at 7400 or near to 7450+ levels. Well, it may still have scope
to move higher but this rise may not sustain. So, what market is expecting and
what it is going to get will have lot of difference.
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.
For today’s trading technical support will be at 7325 and
then at 7300 levels. On higher side, it will face resistance at 7400 levels
first and then at 7450+ levels. We may have impulsive rise or fall near 11 am
depending on RBI announcement. Mid cap and small cap indices are moving rapidly
and dangerously.
Please visit our ‘intraday updates’ to get further updates or
to take good advantage join paid services.
Strategy for Nifty June
future – Nifty June
future may open near 7390-7400 levels. It will be better to stay away from
trading on index till RBI policy comes. I feel that we will see some heavy
resistance and profit taking from higher levels after RBI policy. Technical
support will be at 7330 levels.
S&P 500 (USA) – S&P had a boring trading day
yesterday. It has closed at 1925 which is just in striking distance from
expected 1930 levels. First hint for top formation is coming from AAPL stock
which hit a high at 644 day before yesterday and closed in red for two days in
a row. It is suggesting me that top is near. Perhaps top will come at very
close to 1930, it may violate by few points but it cannot be far away from this
level.
