You must read previous articles and watch the given chart carefully to
understand this article completely.
24 April 2017: -
On 21 April 2017: FII Net Sold – 978.34 INR Crs: DII Net Bought – INR – 1132.39 Crs
Welcome back, I am writing after a long vacation. Last time, we
advised short on Nifty Future at 9230-9240 ranges on April month future to hold
for last week. Nifty continuously slipped whole last week. Now, we are on
expiry week and time has come to take position in May month series. Right now,
US futures are trading with massive gain and this is indicating that market may
open higher but it will not be much higher.
After hitting a staggering 9273 levels, Nifty has failed to impress at
top. I have quoted for threshold support at 9000 which is still too far to
talk. Nothing much has changes on chart for whole this month. Well, have a look
on momentum indicator RSI which is running with divergence. Its impact must
come this week and to make impact on derivative expiry.
For today’s session, I am expecting market to open on flat to positive
note. I can still quote the importance for levels, support will emerge at 9060
and then straight at 9000 levels. On higher side 9160-9180 may be the zone of
stiff resistance. Do not think that something great can happen immediately to
make this market broader for trading.
9274 is going to be a very stiff resistance. Once it crosses above
9274 then I can expect a move for 9500 levels. Do we have enough fuel for this
this kind of fresh up move?
Caution note is clear – first one has to watch for weakness on small
cap and mid cap indices. Before top, there may be the days where mid cap and
small cap indices will be negative and bluechip index will maintain flat to
positive note. I will look on small cap and mid cap index to compare relative
under performance.
Strategy for Nifty May future
– I am all prepared to take new position for May month series. It is likely to open around 9160 levels. I am
not expecting anything great above 9200 levels. We can expect weakness at
higher levels which can again continue for this week. well, if this can sustain
tall above 9200 levels then only we can expect positive but that will also not
going to be impressive.
BANK NIFTY May future – Bank
Nifty usually keeps the key for expiry week. It is still saving market and
showing better strength than index. I am strongly advisable not to deal this
index on negative side as no firm signal has formed yet. If Nifty has to show
power on higher side for bulls then contribution from Banking index may be
massive. Perhaps, this index is the reason that I am keeping some reservation
from shorting on Nifty in massive way. This is balancing index. These are the
days to trade light.
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