You must read previous articles and watch the given chart carefully to
understand this article completely.
For 02 June 2016: -
On 01 June 2016: FII Net Bought – INR 259.90 Crs: DII Net Sold – INR – 160.49 Crs
It turned another dull day as expected and as anticipated. I have
quoted for resistance at 8240 levels which has worked so far. Worse goes with
bank nifty which has given early sign of price correction. Now, we can be on
decisive day before upcoming monetary policy review next week. Political cartel
has definitely pressurized RBI governor for rate cut. What will he do now? Current
NDA government has presented their ugly part their economic agenda. Perhaps,
they have no agenda except talking big. Sooner, this policy paralysis will hurt
and cause another big down wave.
For today’s trading session we can expect the market to open flat to
up. So far, the week is dull. We have not traded index so far this week. Even
for today I have same expectation. Market may remain dull with trading
resistance at top near 8240-8270 levels. If I see it going towards my desired
resistance then I may opt trading short on higher levels unless it goes above
8240 levels.
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.
Please visit our ‘intraday updates’ to get further updates or to take
good advantage join paid services.
Strategy for Nifty June future
– I am unable to see any decisive move even now. We cannot see any great move
even today. Do not trade if market goes like this. Threshold support goes now
at 8080. As long as it is above 8080 we cannot expect decisive profit taking
either. Time correction goes in favour of bulls so far. Let us see what is
going to happen next.
BANK NIFTY – This is index
is disappointing at top. Well, as expected it has broken 17500 and it has first
sign of short but this is not so firm signal where I can trade with confidence.
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.
