You must read previous articles and watch the given chart carefully to
understand this article completely.
04 January 2017: -
On 03 January 2017: FII Net Sold – 500.49 INR Crs: DII Net Bought – INR – 562.27 Crs
We can sense that market is struggling above 8200 and it is not able
to find more buyers. I can say that if Indian market is showing any resilience
then it is due to the fact that major global indices are running higher
specially US market. Market got news that we will have Union budget within less
a month now. So, market need to prepare itself for Budget too.
For today’s trading I am expecting a flat start as it is due to the
impact of good rise in US market. Technical
resistance will emerge again at 8220-8230 levels. Technical support is in the
range of 8150 to 8130 again. Well, same levels and I have same views. Some days
US market will face resistance and retrace the rise and we will came to know
about reality of Indian market.
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 January
future – My study remains same. It is showing for a start at 8200 as of
now. Well, in my view market will not able to sustain at higher side. It may
give up its gain sooner or later. Technical resistance is at 8225-8240. In the
down side it will have support at 8150. Can it break? If it breaks then we can
expect a good fall. It does not matter if it happens today or tomorrow.
BANK NIFTY – This index is
weaker than Nifty. If blue chip index has to see a fall then I can see a
possibility of first fall on this index itself. Technical support is at 17900
and we can expect the test of 17900 sooner or may be by today itself. Below 17900
we can expect a panic or panic like movements. On higher side, it cannot be
safer unless it go above 18300 levels.
