You must read previous articles and watch the given chart carefully to
understand this article completely.
For 07 October 2016: -
On 06 October 2016: FII Net Bought – INR 353.80 Crs: DII Net Bought – INR – 124.45 Crs
Nifty hit a low around 8680 and closed on weak note. Technical charts
are suggesting for a possible dip around 8600. It has nothing to do with tussle
between India and Pakistan. It is just a normal market dynamics. Technical resistance
will remains at 8800 levels. I am repeating again that traders should avoid any
long trade.
I must suggest to all readers that please do not demand for my Elliott
wave labelling as those starts many unnecessary debates which can affect your
trades and mine too. I am publishing my conclusions which are primarily based
on Elliott wave theory. I am doing manual marking keeping all rules in my mind.
It is my personal view that no software is capable enough to give correct
marking.
For today’s trading session I am expecting market to open on flat
note. It will get support at 8680 after opening. I may expect 8600 levels if
this can breaks and sustain below 8680. We may see some comfortable fall if
this can breaks 8680. This is going to be interesting trade before weekend.
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 October
future – I am maintaining short from 8790 levels even though sell signal
was not very firm. I like to see the development today to decide my desired target.
Technical charts are suggesting for 8700. If this can breaks 8700 then we can
expect a level 8640-8620 sooner. If not this week then we can expect those
levels next week.
BANK NIFTY – I have already
said earlier that this sectoral index can suffer more than blue chip index. Technical
charts are suggesting for a possible test of 19200 levels. Now, one should
prefer to trade on short side if this can even sustain in negative. Bulls may
make few attempt but they cannot win the last words. Do not trade long at any
cost.
