You must read previous articles and watch the given chart carefully to
understand this article completely.
For 31 December 2015: -
On 30 December 2015: FII Net Bought – INR 152.20: DII Net Sold – INR – 74.41
Once again 7940 is on play and market is trading dull on New Year
festival mode. I cannot name this as sign of weakness. This used to come every
year. I still believe that down side can be the opportunity to add long but
here comes shocker. Stopping at 7940 is definitely not a good sign. This is a
zone of right solder of mentioned H&S pattern. Hence, I am cautious. I like
to wait before concluding.
One must look on positive divergence on MACD. It is really a huge one and
can be capable to nullify the effect of H&S pattern which has emerged on
long term chart. If this goes right then we should buy every dip. It’s too
early to conclude hence it is just a view so far.
For today’s trading session, we may see a flat opening. Year-end trade
and derivative expiry is making it is tougher puzzle to solve. Simple, I will
trade long if it can sustain above 7940-7950. If not, then no trade.
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Strategy for Nifty January future – I usually
do not trade derivative expiry day. Technical support is at 7900-7890 levels. On
higher side it needs to spend time above 7960 to claim for gain. I hope for
second half rise but it is just my hope.
S&P 500 (USA) – Once
again it is a profit taking from 2075 resistance levels. This profit taking may
turned to be opportunity to buy in dip. Somehow US indices are showing enough
strength to move higher on New Year. From current levels I am expecting good
trading support at 2050 to 2045 levels and advising buy on any possible dip. It
is likely to hit 2100.
