You must read previous articles and watch the given chart carefully to
understand this article completely.
06 April 2017: -
On 05 April 2017: FII Net Bought – 340.13 INR Crs: DII Net Sold – INR – 194.05 Crs
Nifty extend as expected and hit a high at 9273 levels. Today is going
to be eighth day from the low of 9024 levels which was a gap fill low. Technically,
this extension can go to hit a high around 9300 but this may looks to take some
time now. Global market is not supportive now. DJIA slipped more than 1% in
past trading session from its high point and even futures are trading lower.
This drives the SGX Nifty to trade in negative zone. So is it alarming
now? No, it just can hit sentiments but technical threat is still not present. For
caution, suppose if nifty trades below 9200 levels then only I will consider as
first sign of weakness. Well, even after global weakness, this point is well 65
points away. I am avoiding long for the day.
For today’s session, one can expect a negative start backed by SGX
Nifty. Trading threshold support will be at 9200 after gap down. One may
consider that Nifty may take a 40-50 points negative start.
Caution note is clear – first one has to watch for weakness on small
cap and mid cap indices. Before top, there may be the days where mid cap and
small cap indices will be negative and bluechip index will maintain flat to
positive note. I will look on small cap and mid cap index to compare relative
under performance.
Strategy for Nifty April future
– Nifty April future looks to open down with loss of 40-50 points which itself
is just not good to trade long for the day. Suppose, if it failed to fill gap
down then this may turn to be bear gap down which it itself a bad formation on chart.
If it starts trading below 9220 then we
can expect levels of 9170-9160 as next support.
BANK NIFTY April future – BANK
NIFTY has closed just above 21600. Well, support if it breaks below 21400 after
gap down then one must avoid any kind of bottom picking. This may extend well
on down side. If fall comes global in nature then things may go on reversing
note. Well, 21400 is make or break levels.
