You must read previous articles and watch the given chart carefully to
understand this article completely.
25 April 2017: -
On 24 April 2017: FII Net Sold – 279.55 INR Crs: DII Net Bought – INR – 984.17 Crs
Nifty opened on very strong note yesterday and passed 9160 resistance
levels in morning hours and then took one sided move. This forced me to believe
that market is not going to be back to lower levels immediately. Moment it goes
above 9200 it got better confirmation.
Now it is going to be one more attempt to make a newer all-time high. I
repeat that Nifty level of 9274 is a stiff resistance but a test of this level
cannot rule out. Today is definitely going to be an interesting trading
session.
For today’s session, I am expecting market to open on flat to positive
note. Momentum suggests that if Nifty sustain above 9225 – 9230 then one can
prefer to be on long side with an expectation of levels near to 9274.
9274 is going to be a very stiff resistance. Once it crosses above
9274 then I can expect a move for 9500 levels. Do we have enough fuel for this
this kind of fresh up move? This remains a big question. That’s why I am saying
that today is going to be interesting session to watch.
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 May future
– It has sustains above 9200 yesterday and generated a buy signal which was
surely beyond my expectation but it has happened. Well, as it has happened so
long runs to challenge for a new all-time high today. I can say that I have no
idea what is going to be at higher levels. Either it can violently up or it can
be violent reversal. Those who went with long trade can hold but if not then
just do not trade at higher levels.
BANK NIFTY May future – This
index is the only one which shows the sign of strength. As long as it is above 21700,
we should believe for up and only up. Technically, add long or hold long with
stop loss 21700 which may be little big. On higher side it can reach the levels
of 22200 in short time span. There is no point of thinking short at any levels.
