You must read previous articles and watch the given chart
carefully to understand this article completely.
For 13 August 2014: -
On 12 August 2014, FII Bought INR 370.83 crs and DII Sold INR
39.78 crs
June IIP came at 3.40% again 5.0% last month which is much
below market estimate of 5.80%. On other hand July CPI came at 7.96% against
expected 7.40%. So, practically both these figures are bad for market. Will it
be rally bad?
I give importance to 20 DMA and 50 DMA and their respective slopes.
From current levels of 7727 on Nifty, even 50 points dip may also go for
recovery from bottom. It has generated desired momentum again. Above bad data
may give us levels of 7700 or nearer in opening minutes. It is almost 200
points from bottom of 7540 and so we need one pullback which may come today but
that also is a conditional move.
What has happened in past few days? We saw a dip below 50 DMA
and then formation of hammer pattern to invite rise. Then we have two strong
gap up back to back. This gave us bullish view with momentum. It should be like
bulls will buy every dip.
For today’s session, I may opt to buy dip as long as it holds
above 7680 levels. Remember, if this momentum sustain then it is confirming
short term and intermediate trend as up again. Can it break 7840 again? I cannot
deny. It has one resistance at 7750 and then at 7800 before 7841. Strong
support will be at 7680 levels.
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Strategy for Nifty August
future – Nifty August
Future may open soft with negative 20 points as suggested by SGX Nifty. 20
points down does not mean anything. It is good so far. As long as it is above
7700 we cannot name it any meaningful dip. I want to buy dip but my stop cannot
be below 7690. If I get it near 7710 then I will consider buying. Below 7690,
it can retrace many part of past two days of rise.
S&P 500 (USA) – S&P closed negative but mostly
remains dull on chart. S&P chart is not like Nifty which used to get many
gap in opening. Technically 1945 is a resistance and 1925 is technical support.
Now, we need to see few minutes’ trade below 1925 to see another drag towards
1910-1900 odd levels. As long as it is above 1925 I can say that it is favouring
bulls.
