You must read previous articles and watch the given chart
carefully to understand this article completely.
For 02 June 2015: -
On 01 June 2015, FII Bought INR – 113.47 crs and DII Bought
INR 49.34 crs
We have monetary policy review today by RBI. Market has an
expectation of 25 bps rate cut. I must say that inflation is not justifying any
further rate cut but this rate cut may come to boost Modi dreams of reforms. Well,
in my view it is not a good idea to decide rate cut on political basis.
Based on technical analysis Nifty has resistance in the zone
of 8450 to 8500. Big question is will RBI able to provide trigger to break it
on higher side. This is something which no one can answer precisely.
For today’s trading session, I am expecting a flat to
cautious start. After that we will see technical support in the zone of 8400 to
8380. I prefer to avoid trades till policy comes out. I still feel that Nifty
may not find it easier to cross higher resistance levels. If it can do then we
can expect levels of 8700.
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Strategy for Nifty June future – We exited our long at 8450 levels.
Now, I am in wait and watch mode to deal fresh. One this is for sure that below
8400 we may have least scope to think for long. On higher side, I may give an
attempt to short if I see resistance emerging in the zone of 8500-8520.
S&P 500 (USA) – I keep my analysis same in this
kind of choppy close. Do not trade this index as of now. This is on expected
tug-of-war situation. One day up next day down pattern is making indecisive to
trade. The best way to trade is no trade on this index. I still intact on my
view, that US index is on the making of long term top. So far, it has slipped
from 2135 to 2105 levels. This is the level which S&P 500 is maintaining
from November 2014 itself.
