You must read previous articles and watch the given chart carefully to
understand this article completely.
23 January 2017: -
On 20 January 2017: FII Net Bought – 26.34 INR Crs: DII Net Sold – INR – 175.48 Crs
It finally gave up form levels above 8400. I was expecting this but it
took so long. Today will be litmus test for market. If it fails today also then
one can expect levels of 8300-8280 levels. I am expecting this to happen. First
technical confirmation of fall is that it has closed below 8360 levels. Logically
it should test at least 8280 kind of support levels. If it has not given fall
with quarterly result then it should give fall post result. We have derivative
expiry this Wednesday and we have budget coming next week. Market has every
reason to be nervous.
For today’s trading I am expecting market to give soft opening and
then a slide. Well, 8330 can also be a support but I do not think that it can
hold. Technical resistance will emerge at 8400 and 8435 levels. I am not taking
this as sector specific fall. Equally, I am almost sure that market will get
nothing from budget. If budget has rescheduled before election then it is bound
to be populist budget.
Let us see how things will shape 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 – Nifty future took too long to fall. It has wasted my attempt of
adding put options. Technical support is at 8330 and if this breaks then we can
expect levels of 8280 by today or tomorrow. Technical resistance for Nifty
Future is at 8400 which is not likely to cross.
BANK NIFTY January future –
It gave up from resistance levels and came to the lower levels. It has chance of
hitting 18500 now. Let us see how it will react at opening. I do not think that
Bank Nifty can hit higher without correction. In terms of price it has already
slipped from higher levels and gave up well nearly 400 points. It’s going to be
tricky expiry this week.
