You must read previous articles and watch the given chart carefully to
understand this article completely.
For 22 September 2016: -
On 21 September 2016: FII Net Bought – INR 183.85 Crs: DII Net Sold – INR – 230.59 Crs
Market has moved on silent note in last trading session after giving
up form higher levels. US market has moved sharply higher in last hour of
trade. This can lead higher opening in Indian market. It just mean that Indian
market is going to hit 8850 levels again which remains the higher end of the
range. Decisive support remains at 8740 which is working so far. I am still
anticipating that Indian market is looking tired at higher levels.
For today’s trading session I am expecting market to open on firm note
due to gain in US market. Technical charts are still not suggesting for a move any
kind of breakout situation as market may remain in this range itself. We will
have derivative next week. I strongly suggest that traders should not
participate in market at these levels after higher opening.
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 – We have not got so firm signal so far now. Technical charts are
still suggesting that market may remain in the range. It can take opening above
8850 but we cannot expect further gain. I expect market to retrench its gap up
sooner. Strong caution is advisable at higher levels. Let us see how market
react at higher side.
BANK NIFTY – It just came
at 19750 and closed little higher. Technical charts are suggesting that market
will still remain in the range. Market may see higher opening due to rise in US
market. I have already said that 20200 is a resistance hence this will also be avoided
after higher opening. This may be decisive up this time. We may get some sign
of top formation now.
