You must read previous articles and watch the given chart carefully to
understand this article completely.
For 25 July 2016: -
On 22 July 2016: FII Net Bought – INR 437.78 Crs: DII Net Sold – INR – 365.67 Crs
We spend full 10 days in the same range and market has entered in to
expiry week. Market is still on consolidating mode. I am not very keen in
trading as market is just in range and almost turned unpredictable for next
direction. I still see a possibility of correct but it looks like market was
looking for time correction only. In that case we may see fresh up move to
begin sooner. I like to wait before adding fresh trades.
For today’s trading session I am expecting market to open on flat
note. Nifty is still facing hurdle at higher levels near 8600 levels. Today will
no different day. Hopes are on side line but strong bulls are not entering in
market. Market may prefer to wait for decisive move. Let us see if it can break
the range of 8600 to 8470. Whichever side it breaks, we can get a great move in
that direction by this week. It can be 200 point up or 200 points down.
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
– Higher resistances are still applicable and we are now about to see the
possible price correction. Let us see if we get or not. At the break of 8490 it
will slide towards 8410-8400 levels. Strong caution is advised at higher
levels. Will it able to surpass higher resistance levels as it is far up from
support.
BANK NIFTY – It has broken
18700 and showing sign of weakness. As long as it is staying below 18700 we
cannot expect strength on Nifty. The next and most crucial support will be at 18400
levels. This is going to be decider now. Technical charts are suggesting that
if it breaks 18400 then profit taking can be bigger than expected but I do not
see any such great possibility yet. I may have better opportunity on Nifty.
