You must read previous articles and watch the given chart carefully to
understand this article completely.
For 06 January 2016: -
On 05 January 2015: FII Net Sold – INR 352.42: DII Net Bought – INR – 13.19
Yesterday’s closing is definitely not a good one. Indian market was
showing relative strength. Mid cap has shown buying but overall technical
levels for Nifty remains concerning. I still believe that 7760 is a key
support. Below 7760 we can expect support around 7720-7700 levels. Unless
strong sign of bounce come I do not suggest bottom hunting.
Positive divergence on MACD verses H&S pattern goes on fight. We saw
another right solder formation with top around 7980 and that’s concerning. On long
term chart 8000 may remain tough resistance. I still have enough doubt which
will play for this month. To be fair, if H&S play then one can expect nifty
crashing towards 7200 to 7000 levels.
For today’s trading session, we may see a gap down as most global indices
or indices futures are down again. One can
expect this to take support around 7720-7700 levels only. Do not buy unless a
strong buy emerges.
Please visit our ‘intraday updates’ to get further updates or to take
good advantage join paid services.
Strategy for Nifty January future – I still
do not consider for recovery so far based on closing levels. It seems that 7750
will also violate for today and then it can try to take support around 7720
kind of levels. Shall we buy bottom? One must wait for real time analysis as
its falling knife so far.
S&P 500 (USA) – I do not
need to change my study. 1990 support is still valid. I have already said that
it has multiple time support at 2000-1990 levels. Last night, S&P bounced
from 1989 levels which is just on dot support. Technical charts are suggesting
that this recovery will have life as long as S&P sustained above 2000
levels on closing basis. Remember, most short term bottom forms with a panic.
