You must read previous articles and watch the given chart carefully to
understand this article completely.
For 26 July 2016: -
On 25 July 2016: FII Net Bought – INR 891.01 Crs: DII Net Sold – INR – 67.89 Crs
I have added long in last trading session in Nifty August month future
and few stocks futures. All gave us good before close. I put up a logic that
once it is above 8600 then we will live on the edge of short covering and I think
that we got that. I added long before 8600 on the anticipation of cross over
8600. The way it is going we have possibility of another good rise today. So where
will we see derivative expiry?
For today’s trading session I am expecting market to open on positive
note. The first logical target that I am anticipating is at 8700 with support
around 8600-8580. I suggest staying long will expiry. I will not surprise to
see expiry happening at 8800 levels. I have already quoted that on the break of
8600 we can see 8800. Is the time on now? Remember, I am bullish on this market
from the day we got the breakout at 8000.
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.
To take good advantage join paid services.
Strategy for Nifty August
future – It has crossed higher resistance and we were able to see the
higher close. I am impressed enough to rate it as a buy. Technical charts are
justifying the possible target of 8750. Let us see what is coming. We have
added long from 8625. If time favours then I will definitely hope for a move
towards 8800 levels before expiry. Do not short.
BANK NIFTY – This turned as
laggard compared to blue chip index. This is my only worry point but I am still
optimistic. Good decisive cross over point is 19200. Once it starts trading
above 19200 then we can hope for a sharp move towards 20000 on Bank Nifty. I do
not follow fundamentals or news flow. I listen what charts are saying. If it is
saying buy then I am on buy.
