You must read previous articles and watch the given chart
carefully to understand this article completely.
For 16 December 2014: -
On 15 December 2014, FII Sold INR crs and DII Bought INR 136.02 crs
Indian market has shown better sign of resilience compared to
US or European market. Things turned alarming after WPI data which came at 0%
after market hours. Can it give a hope of rate cut? It does not matter. It is
giving an alarming sign of ‘stagflation’. It has happened last time in the year
2008. It was definitely not expected from any corner. This correction will go
deeper and it may not see sooner end. One can give a discount to intraday and
short term bounce. As of now, it does not look like to re-visit even 8450
levels. What about supports? I feel that levels are same – 8175 > 8135 and
then final support at 8070 levels.
For today’s trading session, we will see very soft opening.
In fact, it can be a big gap down after WPI data. It can be as big as 50-60
points. I do not see any reason to short from low after gap down. Its more than
400 points of fall and a technical recovery can come. It does not mean that
market will improve from here. We will see another round of sell off after
recovery to for a wave ‘c’.
Please visit our ‘intraday updates’ to get further updates or
to take good advantage join paid services.
Strategy for Nifty December
future – Once again
below 8135 we can expect levels of 8235-8230 levels. Below 8230, it is expected
to hit 8190 levels. Will it break 8190? I have no clue before opening. If it
sustain then we may see further dip of 50-60 points. A recovery is likely but a
strong signal of recovery is still missing.
S&P 500 (USA) – This is alarming and looking like
out of track for medium to long term. Current wave pattern has given some
similarity from December 2007 chart. If this is only a wave ‘a’ then think how
bad wave ‘c’ can be. We can get maximum of one recovery. I need to add that
even in 2007; fall came with fall in crude oil price and given confirmation of
big dip. So, we need to conclude that world was saved due to stimulus. If this
is the truth then I have no levels. I like to see market reaction only. After a
bounce, I will add short and heavy short but after one bounce.
