You must read previous articles and watch the given chart carefully to
understand this article completely.
For 04 August 2016: -
On 03 August 2016: FII Net Bought – INR 578.17 Crs: DII Net Sold – INR – 800.75 Crs
8700 may turn to be critical. I am not following the news flow. GST or
no GST but it seems that market has factored GST at this price. My call is
simple that I will be hesitant as long as it is below 8550. Well, market may
take a higher opening. I will plan to trade long only if it can sustain well at
higher levels. If it fails then I must avoid trade just like yesterday.
For today’s trading session I am expecting market to open on positive
note and then it may go here and there only. I gave a decisive support at 8550.
As long as market is below this level, I do not think that it can go in favour
of bulls in ways. Let us look at Elliott wave conclusion. On news flow day, it
is giving a sign of top. Question is – Will 8700 remains untouched now? It
should not be chances are fading now.
Today is “THE MOST DECISIVE” day.
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 August
future – I have not participated yesterday and I have no great plan to deal
today either in very first half. Technically, above 8620-8630 it can regain
momentum but it will not be easier to cross those levels. Do not get trap on
news flow. Wait for market to sustain then only to trade long. In any case if
it gives close below 8550 today then it can destroy bullish formation.
BANK NIFTY – I used to say
that this index was a threat and it turned reality. It has stopped the rising
pattern on Nifty. Technically, 18400 is still a support. If it has to move up
then 18400 must be saved. As long as it is saving 18400 we can hope for re-test
of 19200 but all depends on today’s close. I must be a cautious buyer if I find
enough signals to buy.
