You must read previous articles and watch the given chart
carefully to understand this article completely.
For 05 June 2014: -
On 04 June 2014, FII Bought INR 192.56 crs and DII Sold INR 191.68
crs
It was dull day yesterday on Indian indices. Where is Nifty
right now on chart? Join two tops, on at 7563.50 and 7504 then extend the trend
line. This is decisive supply line and reactions may be reversing in nature. Technical
support will emerge at 7370 levels which will also be a threshold for selling. We
are currently seems to be in triangle consolidation with contraction. I am
concluding this based on hourly chart. Please refer to the image shown.
I have quoted few days back also that Nifty will face
resistance at 7450+ levels even after crossing 7400 levels. So far, things are
almost same. There is no moving average support or resistance near current
levels. This is something which can trouble market if it turns volatile
anytime.
Small cap and mid cap indices are still performer of the
market. There are many stocks in this pack which are moving without any great
base. Investors must be very cautious on selection of stocks.
For today’s trading technical support will be at 7370 and
then at 7340 levels. On higher side, it will face resistance at 7450+ levels. There
will be a day when mid cap and small cap indices will underperform Nifty. Once, under performance of mid cap and small
cap starts then we may conclude for top.
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Strategy for Nifty June
future – Nifty June
future may open near 7410 levels. It will be better to stay away from trading till
clarity. It may be another dull day as long as it hold 7370 and stay below
7450. There is no great clue for trading. Wave patterns are suggesting that we
may see some topping pattern but those will confirm only below 7370.
S&P 500 (USA) – S&P is inching slowly towards
1930 levels. I still believe that it may over shoot by some points. So far, bulls
have full control over the market and support threshold is far away. As long as
it holds 1900-1903, we can see extension. We may have trading support at
1918-1915 levels. My anticipation is that we are near to top but still not on
exact top. Wait for at least first signal of brutal slip.
