You must read previous articles and watch the given chart carefully to
understand this article completely.
27 April 2017: -
On 26 April 2017: FII Net Sold – 492.52 INR Crs: DII Net Bought – INR – 1011.38 Crs
As indicated, market broke higher levels to register a new all- time
high. We have derivative expiry for April month contract. Mostly expiry day
used to be unpredictable. I still believe that market should have more upside
and 9500 levels must be visible in few days’ time.
If I have to make a call for expiry day then I can take a call for
rise based on short covering. Shorts are still in the system which will be
forced to cover. Charting patterns are also justifying for more rise as
suggested in the given chart.
For today’s session, I am expecting market to open on flat to positive
note. Afterward, it should try to test levels of 9400 levels. Once it crosses
9400 then we can expect fear based panic short covering which can give some pleasant
rise.
Can we expect reversal? Well, if this happens then it will be least
expected. So far, nothing is suggesting for reversal but caution call is always
alive.
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
– From 9200 onwards it has seen good 150+ points of rise. I am expecting Nifty
to open around 9380 levels. If it sustain above 9400 then we can expect massive
upside on expiry day. Technical support will be around 9330. One can expect
volatility if it comes down as I believe that lower levels may be bought.
BANK NIFTY May future – Well,
displaying tremendous power as expected it has seen 22200 levels in quicker
time. Technical says to eye for levels of 22500 now. That’s looks too big but
it is just 1% and why cannot we bet for this on expiry day. I must say that if
short covering comes then rise can more violent. Does not matter what’s happen
but shorting must be avoided.
