You must read previous articles and watch the given chart carefully to
understand this article completely.
23 May 2017: -
On 22 May 2017: FII Net Sold – 321.27 INR Crs: DII Net Bought – INR – 1262.64 Crs
So far Nifty has a high at 9532 and we are at 9438. This is just not
enough to say for down. It is just a reaction of events that has passed. Even
Yesterday Nifty was close to 9500 in opening quotes. We are moving close to May
month expiry and I believe based on charting cues that Nifty has points to make
a new all-time high.
Few stocks may undergo price correction time to time but blue-chip
index is far from a top in near term. I am definitely focused on money flow in
each sectors and stocks. Somehow, banking index is not very attractive in term of
price movement. The participation from banking sector is a need if Nifty wants
to move up further. It may just be a breather and sooner we will see better
participation.
For today’s session, I am expecting market to open on positive note as
indicated by SGX Nifty. I am still quoting two important trading supports; one
is at 9400 and next is at 9370. As long as 9370 holds we can expect market
moving up only. Near to derivative expiry traders should be careful but I feel
that it should favours bulls only.
Sectoral performance may go on flip flop mode time to time but overall
buyers are still interested in market price. Pricing looks expensive but it is
still attracting buyers. Can we expect reversal? Well, if this happens then it
will be least expected. So far, nothing is suggesting for reversal but caution
call is always alive.
Caution note is clear – first one has to watch for weakness on small
cap and mid cap indices. Before top, there may be the days where mid cap and
small cap indices will be negative and blue-chip index will maintain flat to
positive note. I will look on small cap and mid cap index to compare relative
under performance.
Strategy for Nifty June future
– SGX Nifty is suggesting opening to come around 9480 levels. Well, if this can
sustain then I can expect levels of 9530-9550 by today itself. If short
covering based rise comes then we can expect trading levels of Nifty future to
be around 9600 too. In the down side 9400-9380 has proven as good trading
based.
BANK NIFTY June future – This
makes me little concerned but I think that it is just a matter of time in term
of participation. I am not giving levels for this index. I am just not going to
touch it right now as strength is missing for trading. I can just hope that 22400
levels will not be broken so easily. Let us see if money hits this index near
expiry but surely, it is concerning.
