You must read previous articles and watch the given chart
carefully to understand this article completely.
For 29 September 2014: -
On 26 September 2014, FII Sold INR 1133.64 crs and DII Bought
INR 1335.33 crs
Who bought after S&P booster dose? It was not buying by
FIIs as suggested by above data. Now, all eyes are on RBI policy which is scheduled
to come tomorrow. Optimism has grown a lot but I am not expecting any rate
change before festival season. Best thing that market can have will be positive
wording by RBI governor over growth but that has already discounted by market.
Technical chart set up may look positive on hourly chart
after a bounce from 7840. This has less effect on daily chart. It is just
saying that some steam may come on Monday morning hours. Well, I must warn that
an impulsive rise always bring to threat to be trapped on rise too. Just, be
cautions at higher end near to 8000 levels. Sooner, it can change the chart’s
view on hourly movements too.
I still find charts of mid cap stocks as weak one. Many mid
cap and small cap stocks will see continuation of selling. I have a caution on
stocks like HFCL, which has moved from 13 to 24 and now at 19. Make sure that
you do not get trap in such stocks. My past caution on JPASSOCIAT, GMRINFRA and
UNITECH slipped near to 20% past week.
For today’s trading session, we will see resistance at 8000
levels on higher side. In the down side, it will get support at 7925 to 7900
levels. If it breaks 7900 by any chance, today or tomorrow, then it has bright
prospect of breaking part week low of 7840 too. Can cross over of 8000 give set
to buy for 100 points? This may not be impossible but surely a tougher deal.
I am still saying same words. Spoiler for global market can
be just one big factor – Currency market. Almost every currency of emerging
market is again showing fear on chart against USD. What can be good for US
market may not be good for emerging market. I am writing this paragraph from
past many trading sessions.
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Strategy for Nifty October
future – I am
expecting a flat opening. Immediate technical resistance is at 8060 levels.
Cross above 8060 should result a move towards 8100 levels but such higher
levels may not sustain. We may see the generation of saturation point near 8100
levels. Below 8000, it can invite selling towards 7960 to 7950 levels by today
itself. Do not expect a mute market.
S&P 500 (USA) – It has bounced before hitting 1956
but this bounce is not a bounce which can stop bear’s party. Charts are suggesting
that as long as S&P is below 2000 we have reasons to expect sell off from
higher levels. S&P will trade throughout the week. Trading range can be
2000 to 1956 only with a weekly top either at 1988 or at 2000. I can say, use
rise to short this recovery. October may be an ugly month for equity price. DAX
to see major hit sooner now.
