You must read previous articles and watch the given chart carefully to
understand this article completely.
For 27 May 2016: -
On 26 May 2016: FII Net Bought – INR 581.29 Crs: DII Net Bought – INR – 685.37 Crs
This is definitely not against my expectation after seeing Wednesday
rise. Well, for whole month I was anticipating the move which was supposed to
be opposite of reality. For the same reason I do not used to trade near expiry.
So what shall be taken up for new series?
Big question is – Is this set up for 8800-9000 Nifty as shown by
reverse H&S pattern of chart or is this trap of year? Hmm, I have a very
strong doubt for any extension of rally but 101% I do not want to be short. I
may sit side-line to decide. I am taking my call of long term top yet when
though Nifty is on the highest point of the year. I was expecting a top near
8000 but things has chanced yesterday.
For today’s session, Nifty may open flat to high. Nifty may give an
attempt towards 8100+ levels. I do not have any view for top yet as there is no
topping pattern. In fact is reverse, it is looking bullish to more bullish. If
I have to trade then I have to be very cautions. It is not the market where I
can have good confidence for trade intraday.
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 booked my loss on Wednesday and happy that I have not expended that
further. It looks so minimal now. I was anticipating this kind of move to the
end of this expiry although I was able to notice just on Wednesday. I should
see this a day ahead. Now, 8130-8150 may be on hunt. I am not on trade yet. Technical
support stands at 8050 levels.
BANK NIFTY – It goes as
expected to hit 17350 levels. Can this extend further? Now, as long as it can
stand above 17200 levels we can expect levels of 17770-18000 marks. Today is
going to be more decisive day to trade. If a top has to form then third day of
rally used to have a key. Most top used to come on third day.
