You must read previous articles and watch the given chart
carefully to understand this article completely.
For 14 August 2014: -
On 13 August 2014, FII Bought INR 718.27 crs and DII Bought
INR 22.03 crs
Before beginning have a look on different indices. Nifty – up
0.16%, NIFTYMIDCAP – down 2.37%, CNX SMALLCAP – down 3.34%.
Above phenomenon is always alarming if it comes near all-time
high on long term blue chip indices chart. We have strong possibility of bear
attack on Nifty anytime at higher levels. Take a note that as long as Nifty is
above 7680 it will be very difficult to present any view for profit taking just
based on Nifty chart. If I am advising selling at higher levels, then it is
derived from other indices chart.
It is almost clear that one should not try to catch the
falling knife on mid cap and small cap indices. JPASSOCIAT slipped from 90 to
51 levels. Yesterday, it slipped over 9%. IBREAEST slipped from 110 to 62, yesterday
it slipped near 9%. These are the example which we have predicted for shorts. List
is even bigger. One should try to understand the psychology of the market.
“Fall in mid cap says
that now investors are not able to find value in market and hence switching
their money in front line or defensive stocks. This also says that top is very
near.”
For today’s session, I am expecting a flat to soft opening
but it will find itself difficult to cross above 7760 levels. I am again saying
that 7690 levels will have good trading support. Once it close below 7690-7680
levels then we can confirm for fresh wave of down side.
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Strategy for Nifty August
future – Nifty August
Future may open on flat note near 7740 levels which is definitely against
broader market message. We have stiff trading resistance at 7780 levels. Technical
support will come at 7700 to 7690 levels. Once it breaks below 7690 then we can
expect for the retest of 7550 levels. Today it last trading day of the week.
S&P 500 (USA) – S&P closed above 1945 and looks
to extend little more from here. Now it is well 20 points away from its crucial
support of 1925. So far, this move is looking to extend towards 1958 levels.
What I can conclude form chart is that we are seeing short covering rise above
1925. There is no sign of weakness yet. Whenever next round of sell off begin
it will take out 1900 levels this time. Be cautious of any higher levels near
1958 or just before.
