You must read previous articles and watch the given chart
carefully to understand this article completely.
For 29 January 2015: -
On 28 January 2015, FII Bought INR 1723.17 crs and DII Sold
INR 1292.70 crs
Yesterday’s high on Nifty was 8985 levels followed by almost
100 points sell off from intraday high point and closed flat. This is DOJI
formation which is usually is topping sign. Indian market is 7% higher than its
100 DMA while US market is travelling below its 100 DMA. This kind of outperformance
never sustained for long in past. It will be interesting to see how long this
can sustain this time.
We have derivative expiry for January month series today. What
we have seen in first half yesterday was a short covering. If shorts are
covered then we can expect long unwinding. One think is sure that we can expect
100 points trading range for today.
For today’s trading session, 8870 will be a key level to
watch. Below 8870 we can expect a move towards 8800 too. On higher side, we can
expect stiff resistance at 8940 and 8985 levels. If we get follow up of
yesterday’s selling then we can expect 3-4 days sell off. Just take a note that
it was more than 800 points rise in one go so even if it got sold by 300 points
then also, people will say its profit taking. In reality it is not. It is a
toppy formation.
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Strategy for Nifty February
future – SGX Nifty is
giving hint for weak opening near 8930 levels. If this happens then bears may
have a good chance of dragging it lower further near 8900 levels. I say not to
act for intraday as it is derivative expiry. One can expect resistance at 9000
levels. Let us see what we get.
S&P 500 (USA) – I have already said that direction
is in bear’s hand now and a move is likely towards 1990 to 1980 levels. We saw
close near 2000 levels. Do you now that S&P has again broken 100 DMA which
is at 2010 levels. It has 200 DMA at 1972 levels. So, all crucial moving
averages are coming closer in this more than two month’s consolidation. Every bounce
got sold near to or above 2050 levels. This is itself a bearish formation. It is
matter to time to see a break below 1972 Sooner or later, this is supposed to
happen.
