You must read previous articles and watch the given chart carefully to
understand this article completely.
07 November 2016: -
On 04 November 2016: FII Net Sold – INR 343.30 Crs: DII Net Bought – INR – 1089.86 Crs
Nifty hits 8400 as a dot. Well, it was in line with my expectation. I was
expecting a subsequent bounce from levels near to 8400. It seems that major
part of the bounce will be missed due to gap up opening. This is something
which is beyond control. I have no position on index as of now and I need to
plan my trade depending on gap up. Shall I try to buy top or shall I wait to
add long? It will be too tough call.
For today’s trading session I am expecting market to open around 8500
and this is I am expecting by looking SGX Nifty. 101% it will not be easy to
trade after gap up and especially if it comes around 8500. On safer side I suggest
that one should wait for some time to judge. I hope that it can give some lower
levels for trying some long. It is my honest confession that this is just my
hope and technical has yet to support my view.
Elliott was giving 8400 or nearer and a bounce. Sentence is simple but
not easy to convert in to trade.
Read this long term analysis again.
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 – I tried a long on Friday and booked on flat note. I was
anticipating a bounce but this bounce is coming in gap up form. This kind of
moves irritates most. Technical support will come at 8480 after gap up. Let us
see if it can give some trade or not. So far my view is trading long on
pullback and near to support with thin stop loss.
BANK NIFTY – From levels of
18800 BANK Nifty may have many short term support and we saw low near to 18900.
On higher side we can expect a possibility of 19400-19500 in the bounce. I cannot
exactly quote where to buy. So far my view is that we should trade long from
any pullback. Although, this may not be easy deal.
