You must read previous articles and watch the given chart carefully to
understand this article completely.
16 January 2017: -
On 13 January 2017: FII Net Sold – 117.59 INR Crs: DII Net Bought – INR – 473.50 Crs
Well, I have presented the snap of one of my system. It is giving me a
hint of fall. Top which hit in very first minutes of Friday’s session may
remain top for the rest of the month? If I am right then market is all set to
take a drop of nearly 2% this week. I am expecting the levels of 8200 or nearby.
There is no point to trade long. One must note that right now many global
markets are showing the sell signal.
For today’s trading we can expect some soft opening as indicated by
SGX Nifty. Technical support is at 8370-8360 levels. If this can break in
initial minutes then market will under grip of bears for sometimes. I am seeing
the immediate possibility of 8300 levels. On higher side 8430 and 8470 levels
will act as tougher resistance to cross.
A big question – Can I say that 8460 is a high for this quarter? Well,
why not if this week goes for even negative closing.
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 – I have added positions on 8300 put options after losing money on
short position on Nifty future. I am sure that can I recover and make more than
what I lost. If Nifty future breaks 8380-8370 on lower side then we can see a
possible fall towards 8300-8250 levels immediately. Technical signal to trade will
emerge if it breaks the levels of 8370.
BANK NIFTY January future –
Bank Nifty is not yet giving me a clear view. One thing is for sure that 19000
will as decisive resistance. I am expecting a fall towards 18600 levels. I can
see the possibility of fall this week. Every higher level will be a zone of
resistance and it should be utilized by traders to trade on short side.
