You must read previous articles and watch the given chart
carefully to understand this article completely.
For 17 December 2014: -
On 16 December 2014, FII Sold INR 1247.24 crs and DII Bought
INR 534.60 crs
Brutal sell off continues. Short term wave ‘5’ corrected by
61.80% of the magnitude. Even if recovery comes then also it will not be a
chance to buy market. Wave patterns have turned for reversal signal. As of now,
I am expecting fewer positive close to form a wave ‘b’ which is up in nature. My
concern is about the fall which will come to form wave ‘c’. my fair assumption
is for the correction of whole 5th wave as it already corrected by
61.80%. Yes, I believe for a move towards 7800 in second round of sell off. I am
not in the position to say for falling knife. Take a strong note- soft negative
is also not a recovery.
For today’s trading session, we will see soft opening in
negative zone. What I feel is that we will get a logical (not technical)
support at 8000 levels. I must say that after more than 550 points sell off on
Nifty in short time is keeping me shy from shorting too. This is just not easy
either. One thing is clear, prepare for big move in the market for few weeks
more.
1 USD = INR 63.55____ What does this means when crude is at
$55/bbl. 101%, FIIs are selling and going home.
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Strategy for Nifty December
future – Below 8100,
only bears can take a victory signal. I need to go long back to the chart ti
take past supports. Below 50DMA, Nifty is struggling. Technical says for
support in the zone of 8050-8060 if it breaks below 8100 and sustain.
S&P 500 (USA) – A bounce which was deserve to come
has come yesterday but got sold intraday itself. It is just confirming my view
that year 2014 is turning to 2007. Structures are almost similar. Even if bounce
comes for short term, that will also get sold on rise. Very clearly, market is
taking fall in crude oil price as signal of slowing demand in economy. It requires
another set of stimulus or market hold up for past 5-6 years by stimulus only.
