You must read previous articles and watch the given chart carefully to
understand this article completely.
30 January 2017: -
On 27 January 2017: FII Net Bought – 211.77 INR Crs: DII Net Bought – INR – 482.52 Crs
Union budget 2017 is coming this week. Pre budget rally has done? Now,
market has to be realistic to enter in to budget. Technical target on upper is
done or not? It is a big question. Right now I can see that SGX Nifty is
trading in red. This gap down is crucial.
What I can say about gap down is this, “If a gap down coming after
multiple day of rally and market maintains the gap till close then it has
higher chance of becoming the medium to short term top.”
For today’s trading also I am expecting market to open in line with
SGX Nifty and immediate support should be at 8600 levels. I can equally quote
that market is far far away from the technical level of panic. Hence, it is too
early to say about a top although chances are there.
Event is big and event is going to historical. What am I expecting
from budget? Truly, I am expecting nothing. Budget is just a sentimental
factor. It has nothing to do with dynamics.
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 February
future – 8700 to 8740 was crucial and seems market is about to turn
cautious now. If gap down sustain then it may give up many good points. If it
breaks 8600 then we have chance to see a slide up to 8500 to 8470 levels. Can we
get this kind of big moves before budget? I cannot say exactly.
BANK NIFTY February future –
Is 20000 still reachable. Yes it can but it may have a possibility of missing. Today
is decisive day if bulls like to buy the dip. If it fails then 20000 may not
come sooner. Immediate technical support is at 18600-18500 kind of levels which
is too far. How far this is, we will see this today. One thing- do not prefer
to trade long.
