You must read previous articles and watch the given chart carefully to
understand this article completely.
For 28 March 2016: -
On 23 March 2015: FII Net Bought – INR 976.91: DII Net Sold – INR – 1022.58
Welcome after a long weekend. We are in derivative expiry week. I have
already quoted for the resistance of 7730-7740 in past two trading sessions.
Equally, if it can successfully surpass the given resistance then 7800-7900 is
a also possible. Technical charts are suggesting that market may go on decisive
mode. I must say that failure at higher levels can itself drive a Sell signal.
So far, I am anticipating softness near resistance at 7730. I am impressed
with strength in many stocks. Have look on stocks like Tata Steel, which were
at 200 few weeks back and now it is at 300+. I am not a buyer on index now in
general case. If it can surpass 7740 then only I can think to trade long.
A reader has suggested deleting the paragraph given below. I must say
that these are long term charting view with warning sign and hence it deserves
to be part of everyday article.
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 March future
– We may expect opening around 7700-7690 only. It will face technical
resistance at 7740-7750. Once again, question remains same, can it cross
7740-7750. My answer remains same. If it failed at 7740-7750 then it can
generate a sell. A sell for the target towards 7600. Somehow, global cues looks
dull.
S&P 500 (USA) – I am
keeping my study same. Market is looking under consolidation mode before any
decisive move. It is still likely to move towards 2100 as long as it holds 2030
levels. I am seeing a rise after consolation but for long term direction this
market is exit on any rise. Trades may not be easy as range can be small. We
may see the ending of March 2016 at 2030 levels.
