You must read previous articles and watch the given chart carefully to
understand this article completely.
07 February 2017: -
On 06 February 2017: FII Net Sold – 201.13 INR Crs: DII Net Bought – INR – 1620.03 Crs
I discussed about the levels of 8740 and its importance. It was down yesterday
and now we are RBI policy day. One day down cannot be named as weakness. Nifty
is on support but 101% these are the days of extreme caution. Remember, many
tops used to come in February. If top comes in February then mostly it turn to
be high point of the year. Momentum is strong but litmus test of momentum will
take place now.
I still repeat for long term view, “It’s simple, either a new five way
to start or double top.”
For today’s trading I am expecting Nifty to open on flat note. Two
important supports for Nifty now are 8740 and 8660 which can save market from
any bigger jerk. Rest depends on RBI policy outcome. I strongly believe that
RBI will not disappoint the market. If that’s so then I have fair reason to
believe for some higher levels. Well, what’s if RBI disappoint?
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 – Up or down , trend will remains intact as long as Nifty Future at
least respect 8740. Its policy day so we should not deal much. Let us see the
outcome. On higher side 8900 may also be a possibility if market like policy
outcome.
BANK NIFTY February future –
Time has come justify this rally. Will RBI goes in line with trend which is set
up by BANK NIFTY trend? From technical charts, I am in favour of positive or pleasant
news. At least market should respect the outcome. Shall we bet
21000? I cannot say for such bigger target but charts have some hint for bigger
up trend. Well, with this high move, it may make a final top. So, be
carefulllll…
