You must read previous articles and watch the given chart carefully to
understand this article completely.
For 25 May 2016: -
On 24 May 2016: FII Net Sold – INR 815.53 Crs: DII Net Bought – INR – 989.95 Crs
The double ton gain on Dow Jones Industrial Average is showing
strength on Nifty but it does not have its own inherent strength. It makes me forced
to say that today’s gap up may go as trap. As long as Nifty is staying below
7830 we cannot say that we can expect good gain from current levels. Technical indicators
are not supportive for gain.
For today’s session, Nifty may open higher and may try to give a test
of 7800. Take a note that 7770-7830 is a zone of resistance now. Nifty may
hover in this zone but I do not see much chance of closing going around there. I
am on wait and watch mode from here till derivative as derivative expiry is not
my favourite time to trade. Can I think of short covering? I believe that it
can go reverse. Forced long trade will see unwinding.
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
– It is looking like 50 points gap up now. Afterward I like see the retrenchment
from that level. If Nifty June future go below 7800 after opening then it is
highly likely to see that market may end up on weak note only. I am anticipating
resistance to be in the zone of 7830-7850. I hope to see a weak trend after a
gap up. I still stick with my short deal.
BANK NIFTY – Bank Nifty has
shown resilience against the fall from past two days. 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.
