You must read previous articles and watch the given chart carefully to
understand this article completely.
For 05 August 2016: -
On 04 August 2016: FII Net Bought – INR 559.49 Crs: DII Net Sold – INR – 527.11 Crs
Well, market has entered in the phase where it is not responding on
good news. Yesterday’s trade was one such example. This kind of pattern used to
come on top. I must say that it has technical support in the zone of 8500-8460.
Medium term chart is suggesting that as long as it is above 8500-8460, up trend
remains intact.
For today’s trading session I am expecting market to open on positive
note but noting is sure after opening. It may react the same way like
yesterday. Only good part is that it has saved 8500 levels and that is a hope. Technically,
I am still on optimistic but 101% it is the time to be caution. Today is
concluding trade for the week and this may not be good for bulls. if it move
above 8580 then we can hope for revival.
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 am not participating on this dip although I have predicted this.
Reason is simple that I do not want to be easily bearish on market. It is
looking to take opening around 8630 as suggested by SGX Nifty and this will
open the hope alive for bulls. It can save 8600 an sustain above 8640 then a
move is likely towards 8700+. Be cautious as a bull too.
BANK NIFTY – Finally, it
hits my feared levels of 18400 on the failure of 19200. It was concluded based
on Wave chart. Now, support if it breaks 18400 then? Well, answer may be a
pleasure for bulls. We can see further strong dip towards 18700 levels. It is
looking like to face resistance at 18700-18800 for today’s trading session even
on rise.
