You must read previous articles and watch the given chart carefully to
understand this article completely.
04 May 2017: -
On 03 May 2017: FII Net Sold – 517.74 INR Crs: DII Net Bought – INR – 112.36 Crs
So far, we have three dead trading sessions in this week. This is in
line with my expectation. Dead sessions may not be taken as sign of weakness
although we can see tired market. Even the basics of technical analysis are
giving good trading support at 9270 levels, a previous all-time high.
As long as we are able 9270 we can definitely hope for a move towards
higher levels. If this can sustain then we can expect higher levels. In the down
side we have good technical support at 9270 and then around 9200 levels.
This rally should see many extensions as long as it is above 9000
levels on long term chart. So far, there is no great top sign. If it comes I will
update.
For today’s session, I am expecting market to open on flat to positive
note. One can say that we may have a possibility of another day on dead index. Let
us see for good trading support at 9270. I will opt buying at lower levels on
the expectation of fair bounce again. I am still optimistic for 9400 marks to
be tested sooner or later.
Money flow is still not concerning. Sectoral index is also more or
less in favour of rally although it used to turn critical sometime.
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
– It may open around 9330 levels. We can expect a small pullback which may be
opportunity to add long at lower levels. On higher side, I am expecting levels
around 9375-9400 to come but I am not sure if this can come today. Shorting may
work time to time but that is not a concrete and technical call.
BANK NIFTY May future – Bank
Nifty is still trading around 22300 and I hope for 22500 levels to be tested
hence my study remains same. 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.
