You must read previous articles and watch the given chart carefully to
understand this article completely.
05 December 2016: -
On 02 December 2016: FII Net Sold – INR 190.52 Crs: DII Net Sold – INR – 418.58 Crs
I am still expecting 8000 but take a note that we have monetary policy
this week. In fact this week will be full of events. Technical charts are not
in favour of bulls as it has closed below 8100 levels. As long as it is below
8100 we can expect a possible dip towards 8000. I am definitely not greatly
confident for the break below 8000 as of now. It will be time which will answer
if we can slip below 8000 or not. I do not prefer to predict outcome of the
event.
For today’s trading I am expecting a soft gap down. Market is most
likely to slide today. We can expect support only at 8000 which may be weekly
support too. On higher side 8160 and 8200 will be a decisive and stiff
resistance. I am not taking any call for 8000 levels yet. I want to see market
reaction at 8000 levels. On higher side no levels can be safer.
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 – I have decisive position using option as instrument. Let us see
how market is likely to shape up today. It may be the week which will be
governed by events and its outcome. Time is on and we will see opening for
further down. There is a chance of flattish move this week. if that happens
then market will bounce from lower levels. Will it come?
BANK NIFTY – My call
remains same. Below 18300 we can expect 18000. 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.
