You must read previous articles and watch the given chart carefully to
understand this article completely.
Analysis 07 February 2018: -
On 06 February 2018: FII Net Sold – 2326.10 INR Crs: DII Net Bought – INR – 1699.74 Crs
A low below 10300 was little overdone and this may be the impact of
weaker than expected global cues. Technically, a bounce was deserved and it
came. Well, I strongly believe that may part of bounce may have done. My wave
count based study is suggesting that 10800 may be a strong threshold for bulls
now. Do not expect this fall to arrest sooner unless it can stand above 10800
levels.
For today’s trading session, market may open with some optimism
although it may not able to extend more gains from here. Medium term and short
term resistance will emerge at 10800 levels. In the lower side meaningful
support is only at 10400 levels although trading support may emerge at 10500
levels. Trading range is still expected to be broader.
Investment point of view, I have already suggested from December
onwards to avoid pumping fresh money in the market as this rise cannot extend
more. Remember, every rise is not the opportunity to invest or trading. It’s
better to be safer sometime.
Strategy for Nifty February
future – It is expected to open around 10600 levels but do not think that
it is going to be easily in favour of bulls on the hope of recovery. If recovery
comes then also it will sustain at higher levels. Sooner, trading range will
settle below yesterday’s low. This is short on rise but exact point cannot be
defined.
BANK NIFTY February future –
Low was at 25000. Just think how time it took to give up all recent gains. This
is what I called is momentum. This is in favour of bears. Technical resistance
will emerge at 26500 levels and this may be a difficult level to cross. In the
lower side, 25000 will break. Sooner or later it will break at every cost.
