You must read previous articles and watch the given chart carefully to
understand this article completely.
For 07 July 2016: -
On 05 July 2016: FII Net Bought – INR 265.63 Crs: DII Net Sold – INR – 447.48 Crs
Indian market has much better relative strength against global indices.
Technical charts are suggesting that 8250 may not break easily in this month of
trade. This is giving me a conviction for a move towards higher levels. My first
view point as target is 8575 which I am expecting sooner. I strongly suggest keeping
a stop loss and buying in any dip. This weekly closing may be a decisive one.
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 open flat to positive
and if any price correction comes then also it will be opportunity to trade
long only. Technical support stands at 8280-8250 levels. This price action is
suggesting that market has multiple supports at lower levels. Good
consolidation will give good price rise. On higher side anything above 8400
will trigger good move. Momentum once come will continue for many days more.
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
– It goes on consolidation in last trading session. Technical charts are
suggesting that 8300 will act as good support and if this comes then it will be
an opportunity to add long. Well, will these levels come? I do not think so. Anything
above 8424 will trigger a short covering rally. Market is expected to open at
8350 levels. If I find intraday strength then I will prefer to add long. Take a
note that the day it gives closing above 8400, we will get short covering rally
on very next day. Prepare for this.
BANK NIFTY – This is not
participating the way I was expecting for. This is my only worry point for
Indian market. 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.
