You must read previous articles and watch the given chart carefully to
understand this article completely.
02 December 2016: -
On 01 December 2016: FII Net Sold – INR 402.62 Crs: DII Net Bought – INR – 237.81 Crs
Technical set up is perfect for current fall, a wave of fall. Meaningful
technical resistance was at 8250 levels which was just 50% retrenchment of
fall. This may be the desired Elliott wave resistance which has put momentum on
halt. Simple technical chart is suggesting that if trades sustain below 8200
then we can see the beginning of fresh wave of sell off. Well, will bulls give
up easily?
For today’s trading I am expecting a bear gap down. It may be down
below 8150. If this fails to recover then we can see the journey towards 7500
sooner or later. I am not claiming big but I am on my strategy of shorting rise
today. Currency monetisation will have impact on economy and market must be
nervous for next quarterly result. You like it or not but it seems that people
has reduced their spending to a significant levels. So a big question – Is the
size of economic transaction shrinking?
Technical resistance for Nifty is at 8250 and support is at 8125-8100.
Friday is going to be interesting.
This remains part of my article. We may be under bear market till 31st
March 2017 and what I am talking is a pullback of bear market on medium term
wave count. Someone asked me if global market is up how can Indian market be
down? Well, that’s the way and that’s what Elliott wave has convinced me.
I am just writing my view and I am least interested in learning or
sharing so please do not make sure request.
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 December
future – So far, we have 7800 put only which I am on hold and I have planned
to hold this for month. We were on short side yesterday almost from opening
minutes. Today, I will wait for a price recovery after gap down and then I will
prefer to short. I am keen to see 8200 or nearby levels for my shorting. There is
no question of trading long unless something really happens big.
BANK NIFTY – It hits 18700
and then took a “U” turn. It is suggesting that 18700 will remains a decisive
resistance on higher side. If fall continues from these levels then it can hit
levels of 18300 and then it may start a move towards 18000 levels. Can we have
chance to see a cross above 18700. Well, unless this happens do not trade long
on this index.
