You must read previous articles and watch the given chart
carefully to understand this article completely.
For 16 January 2015: -
On 15 January 2015, FII Bought INR 1738.24 crs and DII Sold
INR 527.27 crs
So it was RBI who came to save Indian market from a possible
sell off. Market enjoyed to its great extent. There is no question is how it came.
Fact is that it came to make a possible breakout but unfortunately it has no
global support. We may see relative strength in Indian market for few days. If
global market slips by 2% then Indian market will by 1% but it will also slip.
It has surpassed the Elliott wave resistance which was at
8445. Such blow up gap us used to sustain for few days before giving up. We
need to understand RBI’s stand too. Are they really convinced with lower
inflation and possible higher growth? I give you other way to think about this
sudden change in RBI’s governor’s mind. Was it driven by economy data or was it
driven by politics? I clearly say that RBI has done things in hurry. Government
has not yet passed benefit of fall in crude oil price to even 25% yet.
For today’s session, it will get some gap up opening as
yesterday’s hangover but all global market futures are in deep red. Technical
resistance will come at 8530 to 8550. Cross above 8550 will give a challenge to
all-time high which is at 8629 levels. My words of caution are still alive.
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Strategy for Nifty January
future – I just do
not prefer to trade this kind of euphoric gap up opening which came yesterday. It
is killing most of the time and running with great volatility. Technical resistance for NIFTY January month
future is at 8570. It can show fresh strength only above 8570 now. I am
considering that opening can go around 8530 levels. Note tht my words of
caution for second half of January is still alive.
S&P 500 (USA) – I said,” If it stands below 2000 on
closing basis then it will give a weapon in the hand of bears”. Now, it really
gave a weapon. If you remember, it was already quoted for strong caution for
second half of this month. It is showing all true symptoms now. It seems that
it can easily slide towards 1950 by very early next week. Do not opt to buy dip
now.
