You must read previous articles and watch the given chart carefully to
understand this article completely.
For 08 April 2016: -
On 06 April 2016: FII Net Sold – INR 493.56: DII Net Sold – INR – 258.68
I have warned for the confirmation of top and I am getting all such
signals. Nifty has closed below 100 DMA. Remember, I have already said this
long back that long term trend is down. Rise is just an intermediate correction
as up.
Optimistic people will say that it is just one day below 100 DMA and
they will definitely eagerly waiting to see today’s closing levels. If it
closes below 100 DMA, i.e. 7570 then many traders will give up their long. This
makes me to say that if market trades below 7570 for long then it will give
sharp fall in second half.
For today’s session, longer it trades below 7570 higher will be alarm.
What shall be the target below 7570? Well, one can expect a level of 7400 in
very quick succession. I do not think that it can easily cross above 7570. Even
if it does so then also cannot surpass much.
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 April future
– I expect a flat opening backed by SGX Nifty but I am not too optimistic as of
now. We may see levels of 7670-7700 as stiff resistance but it is strongly
advisable to avoid long on higher side. Wait for a sign of weakness to trade
from higher levels. Note that below 7700, we may see bigger slide. Who knows it
may be 100-150 points down today.
BANK NIFTY – My studies are
simple. Below 15600, it has target at 15300. I am adding that weakness can see
extreme very soon. Do not make any long attempt even if one two days of rise
comes. Sooner or later, it can see 14000 levels. For trading we can see
resistance at 15800 and a point can emerge for shorting for intraday at higher
levels.
