You must read previous articles and watch the given chart
carefully to understand this article completely.
For 10 October 2014: -
On 09 October 2014, FII Sold INR 20.89 crs and DII Bought INR
623.64 crs
Nifty has closed near day’s high but US cheer did not last
longer. We saw another massive sell off yesterday which indicates that recovery
got sold again is. This kind of pattern is a sign of weakness. Nifty moved from
7815 to 7970 which is just an intermediate bounce. We are in trending ‘C’ wave
and it is forming some minute wave in between.
Today’s trading will be very crucial. Take a technical
meaning here – If it closes below 7870 any day form today onwards then a
massive follow up selling will hit to give a panic low for wave ‘C’. It may go
somewhere between 7700 to 7600 levels. Earning season will start now and
traders would definitely like to see Infosys number. These quarterly earnings
will give a view if Indian stocks are overvalued. Now, company’s number has to
justify stock price. If not then a sell off is likely on stock specific move.
For today’s trading session, we may see opening on down side
gap. It is again trapping bulls. Just same way as it has trapped bulls
yesterday. It’s just too fishy. I say, let Nifty settle below 7912-7910 to add
shorts again for a dip of 70 to 100 points but that may not be intraday.
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Strategy for Nifty October
future – As indicated
by SGX Nifty, it may open at 7920 levels which is lower than yesterday’s low. It
is generating tricky move. If it sustain below 7920 then also it may generate
complex trade. Pure, technical chart is suggesting for short below 7920 for a
quick 40-50 points. Although, I would like to add short on intraday bounce.
Will it give bounce? It’s million dollar question.
S&P 500 (USA) – Is it not too fast and too rapid. It
has again taken a dip towards 1925 with a single day. Have a look on move. From
1925 to almost 1970 and then 1925 is back again. It has a meaning. If S&P
breaks below 1925 then we can expect another round of panic. Once again, if it
does not break 1925 then do not short from low. US market will remain furious.
