You must read previous articles and watch the given chart carefully to
understand this article completely.
For 02 August 2016: -
On 01 August 2016: FII Net Bought – INR 726.22 Crs: DII Net Sold – INR – 413.77 Crs
I was concerned about bank nifty as it has refused to break higher
above 19200 and we saw a fall. This is still concerning near 18700 levels.
Nifty has strength but if pressure has to come then bank nifty can put pressure
on it. I still consider that bulls are supposed to be last winner for this week
of trade. I used yesterday’s dip to add long.
My anticipation is that we may see levels of 8900 at least by this
week before any final profit taking. In that way one should just think to buy
in every possible dip.
For today’s trading session I am expecting market to open on positive to
flat note. I will focus on the possibility of 8700 as of now. Technical support
for Nifty will stand in the zone of 8580-8560 levels. I still prefer that one
should trade long only in case of impulsive dip and keep a stop loss around
8550 kind of levels on Nifty. Will banking stock give support?
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 – I have a long trade on this instrument from 8650-8660 levels. This
is not completely out of threat but I expect that it should head higher. I will
see confirmation if it can stand above 8700 levels. As of now I have a plan to
follow stop loss around 8620 levels. Let us see if this works. I am still
looking for bigger target for this week.
BANK NIFTY – I was
concerned for Bank Nifty and we saw a dip. I was worried about this kind of
situation where Nifty try to sustain but Bank Nifty gave a dent. Technically 18700
is a support but I am advising strong caution in this zone. If this breaks
18700 on decisive note then 18400 will be next big support to talk about.
