You must read previous articles and watch the given chart carefully to
understand this article completely.
For 11 January 2016: -
On 08 January 2015: FII Net Sold – INR 1236.95: DII Net Bought – INR – 1003.99
It has closed with a small green on Friday’s session which gave a sense
that Indian market were better than other indices. Still, SGX nifty is saying that
it was a technical pause. This makes no great sense. Pattern on technical
charts are extremely burning. It is giving many hints for brutal targets. Are those
really coming? Yes, it may come but as of now Indian market deserves a
technical correction which should give levels of 7700 at least for once.
Let me clear what weekly charts are saying. A full 1500 points of fall is
possible from 7500 levels. I have no idea if it gives 100% result what it is
showing on theory but the target lies near 6000. Sorry, if words hurts you but
this is what I feel. I do not see Nifty going at 8000 anymore in easier way.
It looks like H&S pattern is taking its effect. Well, if H&S
pattern goes on its true mode then 7200-7100 is the possibility. Meantime Nifty
is over sold for short term and intraday chart. This says that market may
ignore MACD positive divergence and sooner or later it will hit 7200-7100
levels. After that 6500 will be the figure which people will talk about.
For today’s trading session, we may see a gap down and a brutal gap down.
If it opens near 7500 then a technical recovery should govern the day. I just
cannot short this market which is oversold of this magnitude.
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Strategy for Nifty January future – I am
focusing on relief rally for the day. It can save 7500 levels to bet on relief
rally. If not then it can be go to hit 7450-7400 may be the next figure to talk
about. Let us see what is about to come. No one can be confident on any call
right now. This is a phase of panic for traders. Deal in some suitable options
as futures can be wild anytime.
S&P 500 (USA) – No
support can work here. It is looking to hit 1900 levels. This is perhaps the worst
start for the year. This is extremely oversold now and market looks as it has revaluated
itself. If this is the case then also a bounce deserve from levels near to
1900. This is just too tough to handle even by bears. I warn that no recovery
can sustain anymore after a year of consolidation. Bigger dip may hit.
