You must read previous articles and watch the given chart
carefully to understand this article completely.
For 09 June 2014: -
On 06 June 2014, FII Bought INR 1283.04 crs and DII Sold INR 315.15
crs
It goes at life time high close on Friday with rapid short
covering in last hour of trade. This shows that more steam has left in the
market. A life time high is itself a big sign of bullishness. There are
negative divergences on many momentum technical indicators but those have
lesser value. Right now, money flow and momentum is on governing state. I am
saying about momentum as small cap and mid cap indices are still rising with
rapid pace.
Basic of technical analysis says that trend once established
is likely to continue than to reverse. This up trend is coming from 6638 levels
and stretched a lot. My expectation is that it can come near to 7700 also. Caution
is advised for sure at these levels especially mid cap and small cap stocks. Many
stocks of small cap and mid cap indices are rising dangerously.
One need to note that market is preparing itself for upcoming
union budget. Hopes are really big and so far current NDA government is
justifying those hopes. To a great extent, we need to accept that we will see
another hope rally till budget which will come next month. Even if correction
comes, that will not last longer
For today’s trading technical support will be at 7560 and
then at 7504 levels. Higher opening will leave this market clueless to deal but
prefer to wait for initial hour to conclude for trend. As long as it is above
7560, we can expect more rise.
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Strategy for Nifty June
future – Nifty June
future may open near 7630 levels as suggested by SGX Nifty. Technical charts
are suggesting for support at 7590 levels after opening. I will not prefer buy
at top. I can opt to trade long for intraday if dip comes and it saves
7580-7570 levels. At some point, top is going to be extremely volatile. One need
to stay away from those wild top if comes.
S&P 500 (USA) – Well, 1950 is on for S&P. COEB
volatility index VIX is below 11. It is now at 10.73. This is already hinting
that rise is going to be very limited from here. It does not matter even if we
are at life time high levels which are usually bullish sign. Technical charts
are saying for support at 1930 as of now. I am just waiting for some strong
sign for summer sell off which is bound to come. Below 1930 will be my first
sign for short. Short only if desired signal comes.
