You must read previous articles and watch the given chart
carefully to understand this article completely.
For 23 April 2015: -
On 20 April 2015, FII Sold INR 1506.86 crs and DII Bought INR
962.50 crs
We saw a low at 8284 levels before bounce. Finally we got
closing at 8429 levels. This is a strong intraday reversal. We utilized most of
the rise from lower levels with massive gain as we took long on Nifty future
from 8315 levels. On 27th March it had a low of 8269 and hence the
zone of 8269 to 8245 was zone for support. Take a note that 8245 is 200 DMA
support.
I still say that Nifty is forming most brutal H&S pattern
of recent many years which will cause further fall on index in coming days but
right now a price recovery is on. We got recovery after five days of
consecutive fall. If you take magnitude wise it was from 8844 to 8284. It was
560 points without a single recovery.
For today’s trading session, I am expecting positive opening.
Take a note that this recovery can hit a halt at 8470 to 8480 levels. So this
is going to be first litmus test for recovery. I am issuing a strong caution. This
rally will truncate at higher levels. This recovery can sustain for 3-5 trading
sessions at the maximum.
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Strategy for Nifty April
future – We should
get a start near 8500 levels. We will get trading support at 8450 to 8430
levels. I can repeat that no higher levels are safe anymore due to possible
brutal H&S structure. I prefer to buy-in-dip but majority of decisive will
take be taken during trading hours. We have some forwarded long.
S&P 500 (USA) – This is consolidation above 2100
levels. I can say that US indices in the tug-of-war mode where bulls and bears
both try to show their power. In normal condition, technical traders should
restrict their activity near such levels. My call is short near 2110 with stop
loss at 2120 and wait for decisive mode. I am just saying that if this is range
bound market (as seen from past 5-6 months) then short the top end of market. Will
it cross 2120?
