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carefully to understand this article completely.
For 07 May 2015: -
On 06 May 2015, FII Sold INR 1699.60 crs and DII Bought INR
1454.97 crs
It took a gap down and broken 200 DMA. Nifty has not stopped
even after that and hit a low at 8083 before closing near to day’s low. Nifty
is almost at the lowest point of past four months. Now Indian market is in firm
grip of panic. Investors are moving out from the stocks of every sector.
Shall we believe for recovery? I believe that a short term
bottom may emerge by today or tomorrow. Still it is difficult to judge in term
of magnitude of fall or rise for today. As of now it seems that momentum can
take Nifty near to 8000 levels but shorting can have higher degree of risk.
For today’s trading session, I am expecting a gap down. I have
no forward position so I plan to take decision depending on intraday
development. Trading support can be at 8030 and 8000 levels. No higher levels
can be safe anymore. Unless some strong positive divergence comes, we cannot
think about sustainable recovery. I like to see how short term bottom will
come. It must come today or tomorrow.
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Strategy for Nifty May future – We can expect opening around 8100
levels. The next trading support can be at 8060 and at 8020 levels. I have no
plan for long or short as of now but if I find it suitable I may opt to add
some long. A short term recovery should come by today or tomorrow.
S&P 500 (USA) – I had a short from near to 2110
levels which was stopped out in unfortunate way. After that we saw a dip and my
desired dip. Now it is on such a level where it is already down by more than a
percent from sell signal levels. I still do not prefer to short this dip. This is
due to lack of clarity over sell signal. I am not advising shorting at current
levels.
