You must read previous articles and watch the given chart carefully to
understand this article completely.
For 02 September 2016: -
On 01 September 2016: FII Net Sold – INR 301.51 Crs: DII Net Bought – INR – 308.16 Crs
I have quoted for resistance at 8820 and that works. Nifty has failed
on higher end but this is just not enough to say that market gave sell signal
on daily chart. Well, but hourly chart has given a sell. I can repeat what I have
said yesterday that Nifty can see a profit taking and may come around
8740-8700. I still believe the same. Today is the last trading day of the week.
For today’s trading session I am expecting market to open on soft
note. Nifty will face resistance at 8820 levels. In the down side I see the possibility
of 8740-8700. It just suggests that market may see a drop of 1% from current
levels. Take a note that higher levels are a trap for bulls. Do not prefer to
go buy mode at higher levels.
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 suggested for a sell signal yesterday at 8835+ levels. It took a
fall but those came in just last 40 minutes of trade which I suggested a sell
signal in morning minutes. This market was so dull at top. You can expect this
kind of moves again. Below 8780, we can see a fall towards 8750-8730. Friday
fever may give a sell.
BANK NIFTY – I am looking
for a pullback possibility. It can see a profit taking which can drag Bank
Nifty towards 19500 levels. 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. Do
not prefer to trade long at higher levels.
