You must read previous articles and watch the given chart carefully to
understand this article completely.
For 28 June 2016: -
On 27 June 2016: FII Net Sold – INR 146.11 Crs: DII Net Sold – INR – 147.07 Crs
A recovery is still under expectation. Well, as I said that market may
undergo a choppy sessions before derivative expiry. Technical charts are still
giving hope of this recovery but this recovery will by dicey. As long as Nifty
is below 8050 we cannot expect recovery to govern the trend. I am almost sure
that another shock wave fall is very near but not so sooner.
My ultimate target is 7700-7600 levels which should come within a
month.
For today’s trading session I am expecting market to open on flat note
but this is going to be good for trading. It may be 30 points up or down and
market may remain in indecisive mode. Technical support is at 8050 and 8000
levels. Let us see if we can get something tradable. Banking index has saved
and hence that is my good hope. One should go for stock specific trade.
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 prefer to trade long yesterday but that does not work in wild move in a
range. It gave up from a point from where it should have made the day. Well, I may
not opt to trade short easily. Technical charts are giving sign of support. If it
works then rise should come above 8130 only. Support stand at 8050 levels. Let us
see what comes first.
BANK NIFTY – This index is
stronger than the anticipation. Technical charts are suggesting for a move
towards 18000-18100 levels. Technical support is a 17400. If this works then it
may be a buy with moderate stop loss for a move towards desired target. I still
advise caution before derivative expiry. Any surprise move can spoil technical charts.
