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understand this article completely.
For 13 July 2016: -
On 12 July 2016: FII Net Bought – INR 1155.80 Crs: DII Net Sold – INR – 610.57 Crs
We saw almost 600 points on Nifty at one go from 7930 to 8530 almost. This
rally is 12 days old and today is 13th trading session. Now, we may
have a condition. If price correction has to come then it may come in a day or
two before fresh wave of attempt. It is logical too. If nifty has to 9000
levels then a price correction will be healthy.
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 positive to flat.
Afterward it will face resistance at 8575 levels. I am expecting a price correction
to begin either by today or from tomorrow. Remember, I am not saying that it is
my compulsion to expect correction. This correction may not able to truncate the
uptrend. It is just a price correction against sharp rise.
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
– Opening is expected around 8550 levels. Afterward resistance will emerge at
8580-8590 levels. There may be meaning to add short from higher levels today
with caution stop loss. Below 8480, we can expect correction intensifying. Are we
going to get such correction where Nifty future can hit 8400? I expect and I hope
for so.
BANK NIFTY – 19000 will be
reality sooner but one pullback is expected on Bank Nifty although it has gone
up with good consolidation. I am expecting a good short term support to emerge
at 18200-18100 levels. After that a strong rally can hit to give 19000 as
reality. So far, stop trading long from 18700 levels ahead of a possible price
correction.
