09 April 2012- Technical Update – From past few trading sessions, I had advised you to focus on 5386 levels but those has just missed. It was expected. Before providing details here are some key of past few days.
* Strongly advised not to short below 5171 and wait for bounce.
* Suggested for support at 5135, nearly a day in advance.
* Provided hints for rise in phase manner with crucial target as 5317 and then 5386. It was also stated that Nifty may try to miss the levels of 5386 and starts falling.
(Extremely sorry as I mistyped 5386 as 5186 earlier).
(Extremely sorry as I mistyped 5386 as 5186 earlier).
Let us focus on wave B = 5379 - 5136 = 263 points. Bow we are going to see development of wave C, which is prime trend. Theory suggests that the end point of wave C cannot be less then the bottom of wave A.
Globe has turned itself beautifully to satisfy the wave theory. US job data is indicating for a weak monday. It has indicated that if Nifty sustain below 5270 then we can expect a move towards 5200 levels.
There is a intermediate levels of 5258-5250 where market may try to rest before being rapid toward fall. As its the only the beginning of wave C so its better not to try to predict support immediately. I strongly believe that upcoming few days will be remarkably bad for stock market.
One more thing, I have strongly suggested NOT to PICK any banking and reality stocks. Now we will get the reason to justify my actions.
200 DMA - 5150- FREQUENT TEST IS GIVING A HINT THAT IT HAS TO BREAK AND TEST LEVELS MUCH BELOW THOSE. Do take a note that NIFTY is down by 6% in March in spite of $3 billion inflow by FII.
STRATEGY
*We already have shorts on NIFTY APRIL FUTURE from 5380- 5385 levels.
* Immediate support will be at 5278. Break below 5278 will prepare for a move towards 5211.
*We can at least expect fall for upcoming three days of trade.
* Do not try to pick stocks even at lower levels.
Regards,
Praveen Kumar
