You must read previous articles and watch the given chart carefully to
understand this article completely.
Analysis 15 May 2018: -
On 14 May 2018: FII Net Bought – 717.99 INR Crs: DII Net Bought – INR – 687.23 Crs
Right now, all eyes are on Karnataka state assembly election. Market will
definitely respond to this result in opening minutes itself. I am compiling
this article when trend has yet to come live. Market has perhaps discounted the
possibility of hung parliament. Well, I still have a view that at these levels
of 10800 market has to respond possible negative outcome. Hence, I am not
trading bullish for the day unless result comes with clear support for central government.
Anything out from majority for BJP is a setback.
Technical sign is still bullish above 10800. Well, ignore all those
and just watch the outcome of Karnataka State election. RSI looks on negative
divergence.
For today’s trading session, market is likely to take soft and nervous
opening. Anything below 10800, I suggest that market may go in SHOCK !!! mode.
If market falls then first support is at 10710 and then straight at 10600 which
have some meaning. Remember, market may respond as we were near to resistance
at 10900 levels.
Avoid any kind of investment as market is still looking expensive.
Strategy for Nifty May future
– I have no take for the day. If election outcome goes against BJP then market bound
to fall. Fall may go as big as 10700 or it may hit 10600 sooner. Nifty was
already near to resistance at 10900 levels. Reaction needs some excuse and
election result is giving one such.
BANK NIFTY May future – It
has a high 26565 and so I can count that 26600 has almost done. So reaction may
be on the line. I am afraid that reaction looking to wild if Karnataka State
assembly result goes against BJP. Be prepare, worse case target may be as worse
as 26000. Whose knows if this can hit 25800 also.
