You must read previous articles and watch the given chart carefully to
understand this article completely.
03 February 2017: -
On 02 February 2017: FII Net Bought – 108.59 INR Crs: DII Net Sold – INR – 110.89 Crs
Support of 8660 is still maintaining and it has closed almost on dot
around 8740. It has almost done 76.4% retrenchment. Can it extend more? Yes, as
long as it holds above 8660 we can expect extension only. Technical charts are
giving every reason for a pause to fall but there is no single confirmation. Moreover,
we are in February month.
For today’s trading I am expecting Nifty to cool off little in first
half. It will again take support before 8660 and it may take one more attempt
to move higher in second half to challenge a close above 8740. It is going to
be interesting. If it starts recovering in second half then it will have
opportunity to trade long. If it breaks 8660 then we can have opportunity to
trade short.
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 – A good budget saved the market but it is almost silent at higher
levels and market to decide its next course of action. Technical support is at
8680-8660. As long as it holds these levels it will prefer to move higher
levels. At some point it will violate one support. Well, so far there is no
single violation.
BANK NIFTY February future –
No great change in levels and analysis for Bank Nifty. 20000 has done and trend
based momentum target may be looking towards 20300-205000 levels. Shall I
expect more momentum? Let me tell you that in a euphoric rise top used to come
at the time when least people expect about it. Today may be such day. I may have
less chance to trade long without any price correction.
