You must read previous articles and watch the given chart carefully to
understand this article completely.
For 24 May 2016: -
On 23 May 2016: FII Net Sold – INR 65.60 Crs: DII Net Sold – INR – 167.77 Crs
Usually the Tuesday before expiry is known to be violent. If this goes
on violent note that we can expect levels of 7600 by today or tomorrow. We are
now bound to see resistance at 7770-7800 levels. Still, I always advise caution
before derivative expiry. Can short covering hit? Chances are less but I cannot
deny any such development.
For today’s session, market may open on flat note. Afterward derivative
build up may govern the market mood. It can definitely disturb the market mood.
By any chance if it can break the levels of 7700 then we can expect a panic
like situation. We are living on edge. My call is short this market for a slide
towards 7600 for this week.
80% chance is that we are seeing a toping pattern on Nifty and level
of 7992+ may remain top for the quarter.
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 June future
– I have switched my position from May month to June month now. I added short @
7790 levels. If things work then I may expect levels of 7600 by this week
itself. Even if any intraday pullback comes I will add more short. As long as it is below 7830 we cannot expect
short covering to go violent. It will have support at 7700 levels. If it breaks
7700 then we can expect selling.
BANK NIFTY – Bank Nifty has
shown resilience against the fall. This is perhaps the only point that I am
giving edge to the bulls. a prime sectorial index is saving market from the
possibility of big cut. The time is on; it can either make or break levels. We
have technical support at 16100-16200 levels. On higher side it has resistance
at 16800 levels. It is at mid way of the given range. A decisive move is
required to trade.
