You must read previous articles and watch the given chart carefully to
understand this article completely.
For 08 September 2016: -
On 07 September 2016: FII Net Bought – INR 854.06 Crs: DII Net Sold – INR – 768.55 Crs
Nifty knocking the door for 9000 levels but this can turn as
psychological resistance although it has technical meaning too. This market is
not giving sign for top but top has to come at some point. If top forms around
9000 or before then we can see correction in a week time itself. This may come
by next week. Momentum and money flow is key driver and that suggests that
market may not give up so easily. Still I say one should avoid long. This is
too dangerous level.
For today’s trading session I am expecting market to open on flat note
but I am not in the position to say for up or down. This market can higher
chance for truncation very soon. May be today or may be tomorrow or may be
sometime next week. Remember, this may be wave based resistance which used to
some near the completion of wave. If I am right then 9000 is the most crucial
level for top. Today will be eighth day form the low of 8540. A reversal is
likely to come.
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 – Once again, I am inactive on Nifty future deals. Time is very
close for price correction but we cannot spot out a dat. We have higher chance
of seeing a price correction by second half of September month trade. Technical
support is at 8920-8930. If this can break then we can see possible price
taking to begin. On higher side 9000 has yet to be tested?
BANK NIFTY – I am no great
take on bank nifty. It has surpassed 20000 marks and came near to 20500 kind of
levels. Technically it may go near to levels of 20800 levels. It is banking
index which is giving great push to blue chip index in past few trading days.
There is no sign of topping yet. The momentum continues we can see levels of
21000 also very easily.
