You must read previous articles and watch the given chart carefully to
understand this article completely.
For 30 June 2016: -
On 29 June 2016: FII Net Sold – INR 102.91 Crs: DII Net Sold – INR – 20.19 Crs
Gap has filled and it was expected. We are on derivative expiry day. I
normally avoid this day and nearer days too for trading activity. So far,
things are normal and on upside. Market has digested two bigger shocks in
easier ways. In this way market is giving us a sense that market has potential
to move forwards and capable enough to break 8300. Well, this is just a sense. If
it has to break 8300 then no day can be better than today. Either trap shorts
will make forceful exit or long unwind should come. Something has to happen
today.
For today’s trading session I am expecting market to open on flat to
positive note. It came at 8200 which I was nothing thinking as so easier to
get. Technical charts are suggesting for multiple resistance to emerge at these
levels. First such resistance is 8240. Can any resistance work as sell off? If
it has to then it can be 8240 only. If it fails at 8240 then expiry can be
wild. Do not trade if you are light hearted.
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.
To take good advantage join paid services.
Strategy for Nifty July future
– I got the move which I have predicted but I have not participated looking on
to the resistance. Technical charts are suggesting that longer it sustain above
8230-8240 it can add 30-40 points more before testing decisive trend. A short
term trend formation or reversal will be indicated today by last half.
BANK NIFTY – So Far it is
just dull near 17600 levels. Technical charts are suggesting that as long as it
is above 17400 we have no big room for shorting. For long, this trend will
remain range bound in the range of 17700-18100 levels. This sectoral index is
not in my favourite list so far. Although, if market slips from high then this
may have potential to perform.
