You must read previous articles and watch the given chart
carefully to understand this article completely.
For 05 March 2015: -
On 04 March 2015, FII Bought INR 2786.24 crs and DII Bought
INR 16.89 crs
A surprise rate cut came by RBI and we saw a strong gap up
opening yesterday which eventually got sold brutally at top. I wrote both the
things in past few days, a rate cut and a top indicated by wave theory. It goes
same as road map suggested. Big question is – What is next?
Remember, if top got sold at top in this way (the way it has
sold yesterday) then it is most likely to assume for top formation. I strongly
suggest not getting trap by this rate cut. Strongly saying, rate cut is not logical
at this moment. It seems that government assume that rate cut can do all miracles.
Have banks pass this rate cut to lender?
For today’s trading session, we may see some flat opening. It
will get support at 8880 levels. If it breaks 8880 then we can see a sharp
selling towards 8800 levels in quick way. On higher side 8960 to 8999 will be
zone for stiff resistance. One more negative day and we will see a scope for
the retest of 8670 levels.
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Strategy for Nifty March
future – SGX Nifty is
giving hint for opening near 8960 levels. We will get immediate trading support
at 8930-8920 levels. Technical charts are suggesting for a move towards 8920. After
that 8910 will act as next key threshold. If it breaks 8910 by any chance then
we will get another round of brutal sell off.
S&P 500 (USA) – S&P has not found any easy way
to cross even 2120. We saw a low around 2087 but finally it settles above 2096
levels which is a key threshold. I believe that it is a weak bounce from low. Equally
it must have given stress to bulls too as they are also knowing that this is
longest rise on long term chart. This psychology is the cause that market is
not reacting much at all-time high too. Use any rise to short with stop loss
2120. I will be happy to see if it can break below 2096 again and gives a close
below 2096.
