You must read previous articles and watch the given chart carefully to
understand this article completely.
16 May 2017: -
On 15 May 2017: FII Net Bought – 235.33 INR Crs: DII Net Sold – INR – 65.77 Crs
Opps!!! This is just too much at 9450. I am still hoping for 9500 but I
am little bit worried as it is getting late to hit 9500. If I have to name most
suitable day then it will be today. I have projected an ascending triangle on
the chart. This is going with a narrow end now. This is now going to be
critical. It should either shoot up or may have chance of giving a correction.
I like to see today’s close but one thing looks clear that 9450-9500
zone is not going to be easy for bulls. This does not mean that I am taking a
bearish call. Market has crossed so many hurdles with difficulties.
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. I am still hoping for 9500. Take a not that it has surpassed 9270 and
then took support at 9370 with a bounce. This is clearly in favour of bears
although we are facing resistance at higher end. As long as Nifty holds 9370,
this market is just a buy in dip market.
Buying is an easy trade and hence profitable trade. Do not go for
contra deals.
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
– Some may have bought Nifty of Friday’s dip which is giving almost 0.80%. This
is fine so far. SGX Nifty is giving me a hint to test for 9500-9530. If this
has to come then today is the good day to hit. Suppose if we get intraday dip
then it will be opportunity to add long and keep stop loss just at 9370 kinds
of levels.
BANK NIFTY May future – I
do not need to change my study on this index. 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.
