You must read previous articles and watch the given chart carefully to
understand this article completely.
12 May 2017: -
On 11 May 2017: FII Net Bought – 1306.71 INR Crs: DII Net Sold – INR – 1037.18 Crs
Well, high point is at 9450 and that’s not too bad. We saw a trading session
which was volatile in a limited zone. Technical charts are justifying that
pause as every time market moves after a pause. Once again, I am repeating that
flat close cannot be named as weakness. It
is just a breather in rise.
Even US market has seen this kind of rise which comes in slow and
steady move. I am still expecting 9500 to be tested. There is no point to talk
for weakness as long as we are above 9270. I do not see the possibility of
downside break of 9270 in near future.
I am expecting fresh money to hit in the market but as of now I am
watching 9500 levels for Nifty. Will it make or will it break?
For today’s session, I am expecting market to open on flat to positive
note. My view is simple and clear. Use any dip to buy with limited stop loss
like 9360 and just stay for some days. 9500 may either be touched today or may
be in early next week. As long as Nifty is above 9270 we can expect market to
stay on firm positive note.
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 blue-chip 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 is expected to open around 9540-9550 levels. I do expect a rise of 50
points from those levels. If short covering comes then we can expect higher
levels. Technical support is at 9400-9390 levels. Keeping 30 points stop loss
can give better opportunity from lower side. I do not see the possibility of
breaking down.
BANK NIFTY May future – It
turns shy near 23000 levels. Money flow is again turning slow in this sector
but this may not be sign of weakness. It has happened many times in past and it
bounced every time then why not this time too. Technical support is at 22700
and then at 22500. It can be better to buy from lower levels. We may see 23200
to 23500 levels in near future.
