Nifty Futures (Jan) have closed today at 8051. They reversed sharply from 8120. So Nifty futures lost 70 points in the afternoon with non-stop selling which started at 8100 on the Nifty index. This 8100 level was a known resistance but the extent of selling was a surprise, because it completely removed any gains made in the day.
Nifty intraday chart looked strong till around 1.30 pm and it looked like Nifty could close today at 8080-8100 level but Nifty closed at 8034, almost 50-60 points below where it should have closed.
4 months have passed since weakness started in Sep 2016.Sustained FII selling has reduced the confidence of other traders and investors and nobody wants to hold Nifty for more than 100 points – very short term view is prevailing. While FIIs are selling, DIIs are buying in a good way. We should get good gains from current level for exactly this reason. This is a reliable Nifty Futures Trading Strategy. But first, Nifty has to cross 8100 to become safe again, and for any kind of real short covering to come.
Today is 28 Dec 2016, Dhirubhai Ambani’s birthday and I am grateful to him for all his advice and guidance. Thank you.
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