You must read previous articles and watch the given chart carefully to
understand this article completely.
For 10 June 2016: -
On 09 June 2016: FII Net Bought – INR 234.20 Crs: DII Net Sold – INR – 317.74 Crs
Tiredness governed on Nifty and it has slipped. Take a note that 7 EMA
is at 8200 where market has closed. Now, if it breaks and sustain below 8200
then correction can hit levels towards 8130 as of now. Today is Friday and
market is likely to hit lower but only if it can sustain below 8184 which is
yesterday’s low. Nifty will face stiff trading resistance at 8250 levels.
For today’s trading session we can expect the market to open flat. It
may go around 8184 levels again to test support. If market closes below 8184
then we can see good confirmation for upcoming correction. Time is on and correction
is expected to hit. I still repeat that current moves are sending enough
confusion over tiredness and consolidation. Let us see.
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
– Well, the moment it broken 8250, it never were able to regain and hence
closed on weak note. Now, if Nifty goes below 8200 we can expect 1% immediate
cut. I hope that today is going to be a day for big red followed by yesterday’s
fall. Now we can expect a strong sell to emerge. Wait for weakness and hit
bullseye.
BANK NIFTY – It gave up at
crucial 18000 levels and corrected a little. If I am right then we can expect a
big trading move in today’s trade. We can expect levels to hit around 17400 in
price correction. On higher side 18000 may act as zone of stiff resistance. I must
say that Bank Nifty is not as weak as Nifty. If weakness hits then Nifty should
see first sell.
