You must read previous articles and watch the given chart carefully to
understand this article completely.
For 14 July 2016: -
On 13 July 2016: FII Net Bought – INR 290.53 Crs: DII Net Sold – INR – 654.73 Crs
I have already talked for a possibility of correction from the
vicinity of 8575. Nifty hit a high at 8560 and then corrected. Big question is
that will this correction continues. As per momentum is concern, I can say that
correction will not last longer and sooner market may come back to its uptrend.
As of now, we can either see price correction or time consolidation. Whatever
comes, it must be healthy for market.
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 soft and then we
may have decisive resistance at 8480 levels. If it breaks 8480 levels then we
can expect levels of 8400 also. This may not be move for a day. It may take
time to come. Although we have higher chance that market will undergo time
consolidation. Resistance on moving higher side will be at 8575 levels.
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 8510 levels. Afterward it will get support at
8480-8490 levels. If it can sustain below 8480 then we can expect profit taking
for a move towards 8400 levels. On higher side it will face two resistances;
one is at 8550 and next is at 8590. I am expecting pressure day today.
BANK NIFTY – We got
expected resistance at 18700 levels. This is not so weak so far. The zone of
18700-18400 will just keep this under time consolidation only. this may not
provide opportunity to trade on short or long side. If it breaks 18400 then
only we can expect levels of lower side, may be 1800. Let us see what comes,
up, down or consolidation.
