You must read previous articles and watch the given chart carefully to
understand this article completely.
06 January 2017: -
On 05 January 2017: FII Net Sold – 86.88 INR Crs: DII Net Bought – INR – 449.07 Crs
Nifty came very near to 8300 levels. This is definitely against my
expectation. In fact every time it comes above 8200-8250 zones it refuses to
give up easily although market used to fail to get buyers at higher levels. I can
say, “When it looks all good it will turn to be all bad.” Hence, I can say that
this higher level invites a trap at these levels.
For today’s trading I am expecting a flat to positive start. Bank
Nifty is relatively weaker than index or one can say a under performer. Sectoral
indices should be better than bluechip index if it has to sustain at top and that’s
the cue I am taking as higher levels caution. I have no levels to talk as I have
presented a chart. It is my view that Nifty should not stand tall above 8300.
There is no point to believe up.
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 – This is a shocker for me. A gap up trade from 8204 to almost 8250
and this gap up maintains with follow up of up side. Is market shaping for
another gap up. Charts are not saying that gap up is possible or it can
sustain. 101%, be cautious today. I will not deal at all on long side.
BANK NIFTY – Well, one can
talk and one can think for 18300-18400 on Bank nifty but I see a possible
failure at top. Who knows if top comes in just first 15 minutes of trade. Technical
support is at 18050-18000 levels. I can trade on top shorting. I want to pick a
top before I deal.
