You must read previous articles and watch the given chart carefully to
understand this article completely.
08 December 2016: -
On 06 December 2016: FII Net Bought – INR 193.66 Crs: DII Net Sold – INR – 56.28 Crs
RBI has shocked the market. I must say that this move is now beyond my
understanding. Many banks have already reduced their deposit rate on some forms
of deposits. RBI’s press briefing is suggesting that we cannot see rate cut
sooner as they are quoting “fear of inflation”. Well, and I see a possible
phase of deflation on demand squeezing. How contradictory is this? Let us see
who will go right.
For today’s trading I am expecting stiff resistance at 8200 levels. Market
is exhibiting this resistance from past two trading sessions. Can we expect further
returning of strong bears? I do not think that we can expect such attack
immediately. Technical support is at 8050. US market and European market were
up by nearly 2% on and average. This fact can save Indian market. Otherwise I do
not see much reasons for no fall. It is for sure that those markets will see halt
on rise sooner near New Year eve and then Indian market will see real test. Nifty
may be up for the day. If is stand above 8200 then we can see fresh 100 points
rise but those may be a tougher rise.
Technical resistance for Nifty is at 8250 and support is at 8080-8050.
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 – SGX Nifty is now trading above 8200 and we will see opening around
those levels as almost all global indices are seeing big rally. Nifty Future
has resistance at 8230. If it crosses above 8230 and sustain then we can also
expect a mode of rise. Well, big question is will we see Nifty future
sustaining above 8230? I have no clue.
BANK NIFTY – Bank Nifty
remains alarming. This index is so far weaker than Nifty. I again repeat that
if this index stays below 18300 then we can see a fall towards 18000. Now,
18000 will be decisive. Once it starts trading below 18000 then we can see a
possible wave on down side.
