You must read previous articles and watch the given chart carefully to
understand this article completely.
For 20 July 2016: -
On 19 July 2016: FII Net Bought – INR 548.90 Crs: DII Net Sold – INR – 377.43 Crs
It has tested the support range of 8480-8460 with a low around 8470
before bounce. I unwind my short deals and goes on side line. I am expecting
that market may spend time in this range and clearly it is refusing to go down
in the absence of any trigger. For today, no up or no down.
For today’s trading session I am expecting market to open positive to
flat note. Once again support will lies in the zone of 8480 to 8460 levels. On higher
side I rate as 8600 as only possible resistance. Whatever has to come, it is for
sure that market will not easily cross 8600 levels so easily. Today is another
day. Let see what’s coming. I am saying for a possible short at top? May be not,
this time.
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 8550 levels. After that it will get support at 8520-8500
on dot levels. I like to trade only on dip. If it works then today may be the
day to trade long from lower levels for a rise of 30-40-50 points on higher
side. Technically, market direction is still sidewise. If it sustain below 8490
then only we can expect a sustained profit taking. Else, this market is in the
hand of firm bulls.
BANK NIFTY – I am keeping
study remains unchanged. This is expected reaction on levels above 19000 but
this is not giving any good chance to correct. Remember, that as long as it is
above 18700, I cannot suggest shorting. This is sectorial index and may perform
better than blue-chip index. On higher side it will face resistance at 19100
levels. I like to see if it can recover from lower support or will it break the
support.
