You must read previous articles and watch the given chart carefully to
understand this article completely.
26 May 2017: -
On 25 May 2017: FII Net Bought – 589.11 INR Crs: DII Net Sold – INR – 236.44 Crs
Derivative expiry goes exactly the way we predicted and it goes very
perfect with the long that we added in recent dips. I have not touched fresh
long yesterday and we got exit with our long deal. The best and enjoying thing
was that market goes up against many opinions. I always say that best rally is
short covering rally and if you want to enjoy this then you must try to
identify this first.
What’s next for new month of trade?
I am still suggesting that do not take 100-150 points dip from top as
sign of weakness or with a logic that market expensive and any excuse to be
standing against money flow. Money flow is strong and market may advance more. From
a pullback of 9018 market never shows weakness on chart.
For today’s session, I am expecting market to open on soft note as
this is characteristic of day after short covering. Take a note that market has
closed above 9500 levels and this is generating optimism now. Suppose if market
stand well above 9500 then fresh may again hit the market.
Desired technical support for Nifty for today’s session should be 9480
and then at 9440. Momentum technical indicators not critical and so it is
supportive to the money flow. Just see what has happened on Bank Nifty
yesterday.
Sectoral performance may go on flip flop mode time to time but overall
buyers are still interested in market price. Pricing looks expensive but it is
still attracting buyers. 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 June future
– June factor is the only thing that bears can talk about. Take a note that
trading ranges used to be broader for this month. This time also it is going to
be same but trading direction cannot be predicted right now. Well it is my view
that market can move forward in the month of June against history. For today
technical support is at 9480-9440. If it can stand above 9540 then we can
expect fresh rise.
BANK NIFTY June future – Bank
Nifty moved by more than 2% which was than Nifty. What a day it picked to
bounce. June future is trading at 23000 levels. No matter where it opens today
but it is not weak. Market can bounce link this index after every
consolidation. June month usually favours bears but this time may be different.
Technical support is at 22800 levels. I am still waiting to see bank Nifty
going at 23500.
