You must read previous articles and watch the given chart carefully to
understand this article completely.
For 06 May 2016: -
On 05 May 2016: FII Net Sold – INR 388.51 Crs: DII Net Bought – INR – 251.79 Crs
Yesterday’s move came as pause in fall as this sell off continues from
7980 resistance levels. I do not see good possibility of reversal. We can just
need to believe that sooner or later it will hit the levels like 7400. I expect
a pause in fall and then we should use rise for shorting again.
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 soft opening. I see a bright possibility
of hitting 7600 by next week. Today is Friday and we just a positive close
yesterday. If it breaks 7700 by anyhow, then we can see a possible slide
towards 7600. Sequence is suggesting for another day of pause. I am expecting
for a dip in second half or a recovery in second half. First half may remain
dull. This is a challenging day for bull. Let us see. Expect resistance at
7800.
I hope it gave you the value of following paragraph which remains the
part of my daily analysis.
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
– I do not see much chance of recovery but I want a recovery to come. It can
generate another opportunity of shorting. Now, if it opens near 7720 as
reflecting by SGX NIFTY then situation will be troubling. If it does not
recover from 7720 levels then a big slide is possible. On higher side 7800 may
remain untouched.
BANK NIFTY – This goes as
expected and hit 16300 levels. On higher side 16750 may not tested sooner
anymore. Now, if it breaks 16200 then we can expect levels of 16000 levels. I am
expecting a big slide by MAY month itself. I believe that next week is going to
be crucial. In any bounce it is just a short. Policy may be a killer for
banking sector.
