You must read previous articles and watch the given chart carefully to
understand this article completely.
For 15 July 2016: -
On 14 July 2016: FII Net Bought – INR 869.84 Crs: DII Net Sold – INR – 874.15 Crs
Nifty moved forward and coming near to 8575 levels. I am expecting a
pause or a correction from levels nearer to 8575 but so far, we have no single
trace of price correction so far. This suggests me that market will move
towards 8600 at least. Suppose if it can sustain above 8600 then we may see
possibility of short covering rise.
For today’s trading session I am expecting market to open higher near
8600 levels. I am definitely not going to be active anymore on long side unless
I get some real strong buy signal. If weakness comes then we can see some good
action on Friday. If not today then a price correction is coming very next
week. Be cautious at higher levels.
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.
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 8600 levels. After that it will get support at
8580 levels. I do not see much chance of trading on long side unless short
covering rise hit. It is a known fact that most top used to come with short
covering rise and no rise can be better than short covering rise. Let us what
comes. I am not interested to be very active.
BANK NIFTY – It has moved
above 18700 and hence it gave life to Nifty even. Above 18700 Banknifty has
every chance of going near 19000 levels. For today’s trade Bank Nifty will get
support at 18700 levels now. Let us see how will Bank Nifty will react at 19000
levels. I advise strong caution at these levels. Although price correction may
not be big, but big enough to test patience.
