You must read previous articles and watch the given chart carefully to
understand this article completely.
09 May 2017: -
On 03 May 2017: FII Net Sold – 542.47 INR Crs: DII Net Bought – INR – 663.33 Crs
These are not very exciting market. It is just dull and boring at
higher levels. No one is ready to negotiate, neither bull not bear. Well, I
still cannot name it as a sign of weakness. One can say that it is looking
tired and hence taking a breather. I do not favour short unless some sign of
weakness emerges at higher levels.
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.
The level of 9270 is a key. I must say that I am off to my long trades
and not participating in the market. I am ready to take any deal, long or short
but it depends on momentum and range. If used to run dead like now there is no
use to trade.
For today’s session, I am expecting market to open on flat to positive
note. I am not taking any call for the day or even for the weak. My major view
is that we should avoid market for this week. it may be dead. If it breaks 9270
and sustain then it can see some price correction but this situation is not
very likely to happen sooner.
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 are almost on same levels from past almost
nine trading sessions. This is not very encouraging to trade but I can expect
some upside unless this session also turns dead. In case of fall, we can expect
market to take support at 9285 levels. Below 9285, if this sustains, then
things can be worrisome. Well, I fair choice is long trade for the target of
9400. I am worried about dead sessions.
BANK NIFTY May future – Bank
Nifty came at 22800 and this was in line with my expectation. This index is trading better than Nifty. As long
as sectoral index performs market may not fall easily. Think, if it has to
extend its rise then we can expect levels of 23000-23200. This is great levels
to talk. Technical support is at 22700 and at 22500.
