You must read previous articles and
watch the given chart carefully to understand this article completely.
For 27 August 2015: -
On 26 August 2015, FII Sold INR – 2345.77 crs and DII Bought INR 1881.08 crs
Yesterday’s fall from near to 7940
has again proven a fact that this market is testing n-line of H&S pattern
and slipping. Such retrenchment results fall for most of the time. If some
miracle does not happen then this H&S pattern will come into force and it
can cause sharp sell off towards 6500 Nifty levels or may be even more. Note my
above words. There is no possibility of newer high anymore till this year. When
Nifty traded above 9150, we were the first to put a nail that, this is long
term top and top for the year.
One can easily observe the H&S
pattern emerging with two possible n-line, one is at 7940 (I tried long on this
but failed) and another is at 7725 (last hope). It will break and it will hit a
technical target around 6500. Is it going to happen tomorrow? No. I am giving a
price analysis and the long term tern has changed. This target can be expected
in next few months. Usually, panic can cause more fall so target may be
extended on lower side.
For today’s trading session, we may
see up opening backed by rise in US market. Technically, no bounce can sustain
anymore. In my view, as long as it is retracing itself from n-line we can
expect all possible sudden fall which is used to be hall-mark trade for H&S
pattern.
Well, Mr. Prime Minister, have look
on equation of INR vs USD. Do controls before things go out of hand? The blind
assurance cannot help for longer run. As per economy is concern, I fail to see
any great chance with a change in power at centre. Situation is really
alarming. Even a small rise in crude oil price will result rupee hitting 70. I
am adding more. Prepare to see a very nasty devaluation on Indian rupee too. Do
not get surprise if crude turn half from here too.
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Strategy for Nifty August future – I do not think that market will
open with any bigger gap up as shown by SGX Nifty. Intensity may be lower by
closing minutes. Today, we will see bulls forced to unwind their loosing
position. We are dealing in September future where we will see resistance at
7910 and then at 7970.
S&P 500 (USA) – It has again taken attempt to break 1950 but not
came close to this yet. For trading purpose 1950 is a tougher resistance to
deal with. Last night bounce does not have much significance. Technically, as
long as it is below 1950, it is short for trading purpose too. I strongly
believe for target of 1500 levels in near future. A vertical crash is coming. A
big one!!!
