You must read previous articles and watch the given chart carefully to
understand this article completely.
For 25 October 2016: -
On 24 October 2016: FII Net Sold – INR 325.13 Crs: DII Net Bought – INR – 333.26 Crs
This is tug-0f-war kind of situation at 8700 of Nifty. Technical charts
are showing that this is a crucial zone but I do not have concrete sell signal
in this zone. This is just my anticipation that 8700-8740 is a zone of
resistance which I am quoting from past few days. A break in needed. Well, we
are close to expiry and I do not prefer to be very active.
I like to see how market likes to react today. It is still my anticipation
that we may see a final sell signal to act. If this comes then only I will be
active on index else this may remain untradeable in my list.
I have already said that next leg of fall will be decided by the
magnitude of recovery. It is a big question for the possible top. Let us see if
it comes at 8700 or 8750 or at 8800.
For today’s trading session I am expecting market to open on flat note
as indicated by SGX nifty. I am still not very firm for a reversal technical
signal but I can strongly quote that Elliott wave charts are indicating that a
top is coming sooner. I am just waiting for confirmation.
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 November
future – From today onwards I will be active on November future contract. This
will face resistance at 8900 levels. Well, levels like 8920 may also be visible
but broadly this on resistance market. Put writing is suggesting that market is
not like to see a fall but this can never be a guarantee. 101% be caution at
higher levels if you are a bull.
BANK NIFTY – This index has
surpassed 19800 also. This is making market bullish and giving a hope. Hope can
see a shadow near to expiry. A possible truncation can come at 19900. It is
interesting to see. Should one trade long? Well, this may not go the way it
looks. It contain high amount of risk. As of now, if there is a trade then it
is soft long which I will definitely avoid.
