You must read previous articles and watch the given chart carefully to
understand this article completely.
For 22 January 2016: -
On 21 January 2015: FII Net Sold – INR 1747.23: DII Net Bought – INR – 1267.74
So far 7240 has acted as good support which was confirmed yesterday. We saw
a dip yesterday too from higher levels but fall got saved at 7250 itself by
saving 7240 levels. Technically we can expect a recovery. Hint can be seen on
SGX Nifty too.
For today’s trading session, we may get a higher opening but I prefer to
trade long on dip only. Take a note that unless Nifty closes above 7400 we
cannot name 7240 as short term bottom. We saw massive happening in banking
stocks which may undergo some good recovery. I need to warn that current
pattern is something which may cause another round of sell off after few days
of recovery.
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 – We have
derivative expiry next week and today is last trading day of the week. If it opens around 7360 then I like to wait
for dip. Thing is that it is on buy mode from lower levels. Once again it is
not easy to see what that lower level can be. I hope for a close above 7400
today.
S&P 500 (USA) – We saw a
wider range in last trading session but closing was still on better note
compared to what has happened in last days. Technically threat is not over yet.
These are concerning levels based on charting. On other hand market is heavily oversold
in short term and hence the possibility of bounce is very bright.
