You must read previous articles and watch the given chart carefully to
understand this article completely.
For 15 January 2016: -
On 14 January 2015: FII Net Sold – INR 1221.97: DII Net Bought – INR –1526.22
Well, as expected, it has opened down yesterday and then took a recovery
to challenge 7630 on higher side but missed. I still repeat that for bulls 7630
is a crucial level where market is trying for form multiple tops. In the down
side 7425 has proven to be good support which was much near to mentioned 7430
levels. Can I expect recovery? Yes, we can.
For today’s trading session, we may see a flat opening. This opening may
get support at 7500 levels. I expect another day with solid intraday rebound to
challenge 7630 levels. I like to see weekly closing to conclude for the
magnitude of recovery for next week. We may see short term bottom at 7425 but
this is not a final bottom. Market can move to hit 7800 but a deeper cut will
come later.
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.
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Strategy for Nifty January future – Now a day
I am not forwarding trades. Technical charts are justifying the support again
at lower levels. At the strength of lower levels we will opt to trade long. I cannot
pin point the support for long. I expect this to emerge in the zone of 7500.
Let us see.
S&P 500 (USA) – It’s
great to see a bounce from 1890. I must
repeat that as long as it is staying below 1945 treat will not over. So far, we
can name it as a pullback after brutal sell off. Although, I am strongly optimistic
for a remarkable pullback. Let us see how it closes for the week. If it can
close above 1945 then we may expect good rebound next week.
