You must read previous articles and watch the given chart carefully to
understand this article completely.
For 01 July 2016: -
On 30 June 2016: FII Net Bought – INR 1107.42 Crs: DII Net Sold – INR – 190.76 Crs
It has done 8300 on expiry day and nothing could have been better
expiry than this one irrespective of all adverse news flow of last few days. If
it can sustain above 8300-8340 then we can think for the next great target of
8575 as the next big hunt which was quoted from past many days in last
paragraph.
After looking to this structure and then way market has refused to
break below 8000 even in panic we can say that market is preparing something
big. This big think can be as big as 9000-9100 levels of Nifty. I see such
great possibility hence bears must be cautious.
For today’s trading session I am expecting market to remain soft. We may
get some retrenchment of this sharp rise and we should plan to utilize to add
long on dip. Suppose if fall does not come and it breaks 8340 on higher side
then we can expect target good target and hence long should be added in that
case too. One need to be brave to trade long.
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 July future
– I was not expecting much beyond 8280 and it has surprised me on expiry day
although it was not so big rise after opening. It is important to note that it
is maintaining all gap up. This is just one unhealthy pattern, perhaps only
worry point. Using this also, I will wait to for dip to add long to hold my
long for few days. Will I add today or next week? It will depends on how it
comes.
BANK NIFTY – I believe that
above 18100 we may able to see as big as 19000 on Bank nifty. I can say that it
is a good breakout after a proper consolidation which does not show much
confusion. This reflects that bank Nifty can lead the upcoming rally. The possibility
of big rally remains alive as long as it holds 17400 levels. Use dip to buy. I will
be happy to see some price correction to add long.
