You must read previous articles and watch the given chart carefully to
understand this article completely.
01 November 2016: -
On 30 October 2016: FII Net Sold – INR 106.77 Crs: DII Net Bought – INR – 13.15 Crs
Welcome back after a long weekend. Global market is not much negative
but Indian market may not find good support with the beginning of this week. I
must say that current formation is suggesting strongly for a move towards 8500
but I am unable to see the momentum picking towards this level. Charting is
showing a narrowing wedge formation as well as a possible H&S is also
visible.
I am again quoting that 8500 is a key support which is likely to break
sooner or later. I am not accepting that 8600 may have any meaning now. I have
a firm believe that if it breaks 8500 now then market will open scope for
levels of 8200-800 which is based on H&S pattern developing. Well, we
require more confirmation.
For today’s trading session I am expecting market to open on dull
note. Technical support will emerge at 8600 but that’s psychological. Although,
it will be safer to expect market taking support at 8580 before decisive fall. I
am not quoting any higher resistance as it will be at 8700 levels only.
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 –November future contract has closed around 8630 on Diwali day and
it is looking to keep opening quote on the same levels itself. Technical support
will be at 8600-8580 levels. A confident short may emerge below 8580 which
looks little far from now. On higher side 8680-8700 is a zone of resistance and
equally a possible short point.
BANK NIFTY – 19500 keeps
the key with itself. I suggest ignoring what has happened on expiry day. Market
will start giving up very sooner at support levels. Technical charts are giving
a sell to a strong sell if we start seeing below 19500 levels. My anticipated
target is at 18700 which are based on Elliott wave count. I am extremely as I
cannot publish my wave count as those starts unnecessary debate. Very recent,
traders try to convince me to be bullish at 8800+ levels.
