You must read previous articles and watch the given chart carefully to
understand this article completely.
For 31 August 2016: -
On 31 August 2016: FII Net Bought – INR 854.19 Crs: DII Net Bought – INR – 847.70 Crs
Nifty first wave were from 6826 to 7584 and that gave a possible
length of 5 waves. Fibonacci retrenchment suggested that rally could extend to
261.8% of first wave and that 261.80% came on dot at 8819 which was yesterday’s
high. Well, I am not saying that this is a sell signal but it is definitely a
land mark resistance. It deserves a profit taking from this level.
For today’s trading session I am expecting market to open on soft
note. Nifty can come around levels of 8750-8700 in the name of profit taking. I
am expecting that Nifty should not go much beyond 8820 from now onwards and
hence it will be a defined resistance. Indian market is on firm up trend but
that doesn’t mean that correction will not come. This fall may be just the part
of correction. let us see if this correction comes against the strong momentum.
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.
Strategy for Nifty September
future – I was expecting 8840-8860 and we got that range too but there
after also we do not see any great sign of profit taking. Market seems to be
under consolidation mode although technical signal of a mild profit taking is
on and it must get confirmation by today itself. Let us see if it comes or not.
Market is running on with high risk-reward ratio.
BANK NIFTY – It came with a
high above 19800 levels and this is what I was anticipating once it is above
19200. It took an attempt to move towards 20000 levels. This may play a hide
and seek game near 20000 levels. This may start now. Right now I am expecting
profit taking but not below 19500. This may be just a small pullback
possibility only. nothing much.
