You must read previous articles and watch the given chart carefully to
understand this article completely.
For 27 June 2016: -
On 24 June 2016: FII Net Sold – INR 629.14 Crs: DII Net Bought – INR – 114.94 Crs
So I say that it was a great wash out on Friday and after a long time
event has favoured me the way I have predicted. It was more like a gamble. Big question
is what is coming next. Although I have booked my shorts on Friday itself but I
am convinced that market will fall more.
My ultimate target is 7700-7600 levels.
This is just the beginning of end of euro zone. They have solved the
problem. Let me clear my view – problem is not a unified business zone like
euro zone. Problem is a unified currency which is euro itself. Sooner or later,
euro will be disposed. This is only solution. When will this happen? It is beyond
the scope of prediction.
For today’s trading session I am expecting market to open on weak note
but this is going to give a pause in fall. Technical support will be at 7930
levels. On higher side 8100 may be a tougher resistance. I may not opt trading
today if market goes range bound. I have already done enough for the month. Remember,
this is expiry week.
Does this means that Britain will exit from European Union? I see a high
possibility.
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 had advised short only for high risk taking traders. It was not for all but
many had added short and earned good. It was on the wake of stiff resistance at
8300+ levels. Now for the day if it breaks and sustain below 8000 levels again
then we can see further test of lower levels. I strong suggest to trade with
extreme caution. Chances are high for fresh down move but expiry week used to
throw surprises.
BANK NIFTY – It has
rebounded from 16900 and gave good closing levels but I still suggest that
banking index can suffer fall unless it goes above 18100 levels. Technical charts
are suggesting that if it sustain below 17400 then we can see retest of 17900
levels. Below 17900, it can see another wave of sell off. Is this fall an
opportunity of fall?
