You must read previous articles and watch the given chart carefully to
understand this article completely.
For 03 May 2016: -
On 02 May 2016: FII Net Bought – INR 434.93 Crs: DII Net Sold – INR – 109.56 Crs
I am on my point. Nifty has faced hurdle in the zone of 7980-8000 and
then slipped. We have two back to back sessions with fall after derivative
expiry. Take a note that this top came with earning season which was my
expectation. I cannot say that whole global market is fall but I can focus on
point that this is India based sell off some fundamental factors like companies
profitability is not raising. Shall I consider good monsoon as key impact. Well,
market need to take positive cues when it wants. Right now, market may not
accept good news.
My key expectation is – NIFTY can HIT 7400 by MAY month series and
hence I am holding my shorts. Worse possible target can be 7200 too.
For today’s session, market may take a flat opening. I still consider
that 7750 will offer good support. It may not break 7750 very easily. If this
breaks and close below 7750 then we may see a real big panic sell off. On higher
side 7870 is a key resistance.
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 May future
– Can we expect levels of 7770-7750 by today? Well, I cannot deny the
possibility but I am little shy in taking shorts at lower levels. Suppose if
market refuse to fall in quick time then I may opt to book my short for once
and I will try to revise my short price by shorting at higher levels. This does
not means that I will book immediately. What I mean to say is a pause may come
now.
BANK NIFTY – Believe it or
not we may see 14000 levels by May month series. I am willing to add short for
my own in greed but I prefer to add short on some bounce. 16750-16800 may act
as stiff resistance. We need to save ourselves from unnecessary shorting.
