You must read previous articles and watch the given chart carefully to
understand this article completely.
For 16 September 2016: -
On 15 September 2016: FII Net Bought – INR 345.42 Crs: DII Net Sold – INR – 456.91 Crs
Yesterday turn to be third dead intraday session after a massive gap
down. Now, for today’s session market is expected to take a gap fill up which I
was expecting from past three days. I booked my shorts and goes on waiting
mode. This rise came in line with technical cues. Technical charts were giving
hint for a bounce towards 8800 which we will get today. Take a note that if
market goes flat and dead at higher levels then we may see a formation of sell
signal which can be stronger than the past one.
For today’s trading session I am not expecting market to open around
8780 and then immediate resistance at 8800 levels. I am expecting a test or
cross of 8800 levels on higher side for once. My anticipation is for a firm
sell signal near or before 8840. Note it very strongly that will 8840 it may be
on buy mode. Friday is going to be very interesting.
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, we have not traded Nifty in choppy market. It is going
to take a gap up and it can be a strong gap up. I am expecting a move towards
8860 if it can holds 8800+ levels. I am not sure if I opt trading long. Well,
my prefer can be shorting from higher side.
BANK NIFTY – A retrenchment
towards 20200 can provide good opportunity to trade on short side. It may not able to extend more on higher side.
Technically, we can expect this move to go up and then it will create a short
signal on higher side. Time is on for fresh bears but be cautious one need to
conclude for top formation after gap up. I am least interested in buying this
index. If I have to buy then Nifty may be my choice.
