You must read previous articles and watch the given chart carefully to
understand this article completely.
15 December 2016: -
On 14 December 2016: FII Net Sold – INR 632.29 Crs: DII Net Bought – INR – 210.86 Crs
Well, we have seen three days of flop – flop moves as Monday down,
Tuesday UP and then Wednesday down. It must have trapped many. This is the
formation of sandwiched pattern in favour of bears and now it is looking like
to take a gap down. This is news driven gap down as US fed has hiked bank rate
but to me it was expected.
I already had believed that Indian market has pattern which is showing
for fall in second half of the month. This is on its way now. All eyes may be
on technical support of 8100. Well, it has support range in the zone of
8100-8050. Here, I have a bold view – THIS SUPPORT WILL NOT SAVE MARKET FOR
LONG TIME. Sooner or later it has break. Then one can expect the break of 7900
too.
For today’s trading I am expecting a gap down. Market will consolidate
near to 8100 on optimism but traders must save them self from this kind of trap
which comes in the form of consolidation. It may be same as of part three days
only levels are changing. Do we have opportunity to trade fresh on index? No,
if you do not have short from past days then do not add without bounce. But yes,
one can add short on every bounce.
It is strongly advisable that market may give a top sooner so do not
take many long at these levels. December is not going to be comfortable month
for trading.
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 am not active on Nifty Future rather I am still active on 8200
put and 7800 put. Well, if this gap down maintains then I may not opt adding
short at lower levels. Technical support is at 8120-8100 levels. It is looking
like to hit 8050 or nearby levels if momentum comes. I am geeting a feel like
seeing a good fall next week also.
BANK NIFTY – This index was
clearer than Nifty. It has faced resistance on dot at 18700 and then slipped.
Once again I say to keep an eye on 18300, if this breaks then it can hit levels
of 18000 again. It may consolidate or it may take some time but sooner or later
this is going to happen. Do not trade long unless it takes out 18700 in a
confident way. It looks like it can
break 18300 without trade in this gap down.
