Tomorrow is settlement day for December 2014. Nifty is at 8267. Today though FIIs net sell in cash, they took longs in Index future. Means there is possible upside tomorrow. But, markets poised at crucial levels again after correcting hugely in December. Medium term correction will be there or not????
Here is clue.
Out of two scenarios one is market has to settle tomorrow at 8250-8300 or even 8360 (exaggeration) then nifty target for January will be at 8800 and correction.
The second one nifty settles at 8250-8200 and drifts further in the last week of December. Target will be 8020.
Which scenario is having more chances? Wait and watch tomorrow's settlement.
But here the major clue is, if nifty drifts immediately the possibility of getting support at 8020 is bleak and breaks this level for a target of 7020-7200... Possibility of this scenario is having more chances because of expanding wedge from 7020 to 8620 to be broken at 8020.
Else, nifty has to cross 8800 in January with a big bang for further euphoric run to 9200-9900-10200. Means breaking of expanding wedge to up side with out correction, may not possible.
So tomorrow's settlement will be crucial for determining the medium term direction. Hope for the best for one and all traders...What ever the situation the option traders will get huge profits in January also...
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