NIFTY after hitting 16700 contracted a bit and in that process broke the Important support level of 16400 on spot
Which was Important for very short term. But medium term setup is still strong enough to held us onn sidelines to initiate a positional short trade on INDEX. Before we enter in detail of Price Levels. Let’s understand what exactly is going on in Market while we stand at a critical level on NIFTY. The main problem is mainly coming from 2 sectors 1 BANKS. Which is repeatedly giving mixed signals on both sides because 50% of its components are very week Technically. That really is making the index nervous. 2 PHARMA
It’s extremely tough to find a strong stock in this space. Although this index is highly oversold better to avoid any trades on either sides. 3 AUTO. This also had not Participated in the current rally. Obviously it have plenty of Problems with it. So it also cant put its foot forward to help NIFTY to sustain on upside. 4 FINANCIALS. Better to have no expectations from here as well. Accept few stocks entire space has not Participated in current rally. 5 METALS. This is much better comparatively. Yes in short term prices might correct a bit. But it should be considered a healthy correction. The long term structure is still extremely strong here. 6 I.T. The only in form sector which has fired on all cylinders all stocks have participated equally from this space. Going ahead it shall continue to support NIFTY. 7 FMCG. It also have provided its support to NIFTY in current rally. Going ahead we might see controlled upside here with selective outperformance in few stocks. Same would be the case with CEMENTS,CHEMICALS And ENERGY sections going forward. Interestingly Midcaps and Smallcaps, are slowly moving in a corrective territory since 2 weeks. The correction here might last for 6 to 8 weeks. Before both the Indices again resume their momentum on upside. So be very careful if you have Trading Positions here. For Investments or Holdings there is not much to be concerned. We can afford to hold our Investments till next April. Till then no need to review holdings. As I repeatedly mentioned in Past. We are Hitting a Cycle Top next Year. So for now corrections are an apportunity not a cause of conserne. We might have a decent Pullback near 17000 level onn NIFTY but that also would be Temporary in Nature. Practically you cant stay Invested 100% at these levels. In markets. You have to sit on atleast 40 to 45% of cash. In current times. To provide yourself that apportunity to add your stocks on Lower Levels.
Coming back to Price and Time now. On Price Front even though 1 support has been broken better to avoid a short trade for now. Could consider going short only if 16100 breaks on downside. Below 16100 we could test levels of 15950 and 15780 on spot. On the other side we could again gain some strength above 16660 till the higher levels of 16820 and 17000 onn spot. But better to chase it with thin volumes. Next is the TIME.
TIME is at a very important Inflection point now. Specially the weekly Vibration Cycle stands at an extremely critical point. This week would be very Important because it is a Vibration week. And on Friday we have a Harmonic Day. So lot happening on Time Front this week. If everything goes onn Expected lines then we might have a swing Top around 31st of Aug.
gann,insides 