You must read previous articles and watch the given chart carefully to
understand this article completely.
For 13 May 2016: -
On 12 May 2016: FII Net Bought – INR 24.14 Crs: DII Net Bought – INR – 258.35 Crs
This consolidation goes against all bad news. So far, it is not giving
any great sign of weakness but it is looking tired near resistance levels. If market
has to slip lower, then it can slip anytime now. I am not going to buy this market
unless it surpasses 8000 marks.
Now the time is on for correction to begin. In alter sense; if Nifty
does not show any weakness and surpasses 8000 marks then it will generate
momentum for bulls to get bigger targets. Although chances are less but chances
are there. As long as Nifty is above 7830-7770, this market will not go weak
and remains under firm grip of bulls.
For today’s session, market may take a negative start as reflected by
SGX Nifty. I do not opt buying even after good technical set up as it is on
resistance. I am keeping a view for reversal and weakness for today. If this
goes range bound then do not trade.
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 have fresh trade for positional again. I want to be blank for the
day too. Technical charts are advising caution and I am caution mode only. On
higher side Nifty future will face resistance at 7950- 7960 levels. Downside
support stands at 7850. If it stands below 7850 then we can hope for a
correction to begin towards 7800 before going decisive.
BANK NIFTY – I repeat do
not buy at 200 DMA. A good cross over can give a buy but this is a zone of
resistance too. As of now I cannot say that we got a cross over. It may be just
facing resistance. If it is a resistance then we can see a dip towards 16200
levels. Today is a decider. Avoid buying for today. Just wait and watch before
trades.
