You must read previous articles and watch the given chart carefully to
understand this article completely.
For 31 May 2016: -
On 30 May 2016: FII Net Bought – INR 355.54 Crs: DII Net Sold – INR – 211.09 Crs
I repeat, as long as Nifty is above 8000 the short term trend is up and
strongly up with some resistance at 8240. We may get meantime correction of
100-150 points due to sharp rise. A technical trader may try to exploit this
price correction which can be the result of time correction but this may not be
so interesting. If this correction breaks 8000 then we may point to collect
strong short on index but that’s not the case so far.
For today’s trading session we can expect the market to open flat. So far,
the week is dull. Do not trade dull index. Even for today I have same
expectation. Market may remain dull with trading resistance at top near 8200
levels. I may opt trading short if I get opportunity but that’s only for
intraday. Strong support is at 8100-8080 for trading.
Do not misinterpret. I gave a long term trend as down from more than a
year back. Nifty hit 9119 and then I issued for a long term top. Nifty hits a
low at 6825 on Budget day this year. After such down side, wave theory had
suggested for comparable recovery with three big possibilities for retrenchments,
first to come at 50% at 8000, 61.80% at 8250 and 76.40% at 8575.
101%, I retain my view for long term trend down but that does not says
that we cannot interprets for short to medium term of recovery. This recovery
was bound to come and it is coming to make a wave [B]. Now, just imagine the
magnitude of wave [C]. Higher the retrenchment, bigger fall will hit in future.
If this wave [B] tries to end up near 9000 then 9119 may not be visible for
many years. So, where is my long term target on Nifty? Well, it is in the zone
of 6000-5500.
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Strategy for Nifty June future
– I have not trade so far for the week and I am on wait and watch mode. This market
may generate 200 points Up or down moves. Let us see how it behave at top. I am
expecting levels of 8240 or 8270 as a top before correction.
BANK NIFTY – This is index
is disappointing at top. Well, as long as it is above 17500 we may see up but
this is definitely tired. In any correction on index, this index will fall
more. This may be my first choice for shorting if I opt shorting today with
resistance at 17700. Do not think to buy at all. Let it fall first to trade
short.
