27 August 2014: Nifty Elliott wave analysis: Just a day away from derivative expiry and today is 13th day from the recent low of 7540 levels. Technical resistance zone will be 7930-7940 and then at 7970 only if not 8000. Wolfe wave is still alive!!!

You must read previous articles and watch the given chart carefully to understand this article completely.

For 27 August 2014: -

On 26 August 2014, FII Bought INR 364.72 crs and DII Sold INR 259.18 crs

We are just a day away from derivative expiry and I mostly avoid these days for trading. We have a coincidence for the day, today is 13^th trading session from recent low of 7540. I still believe that Wolfe wave will play its role below 7850 but where is 7850 now. It has saved even yesterday and closed above 7900 levels.

Take a note that market has done nothing from past six trading sessions except ranging at 7900 here and there. It is just making things tougher for traders to conclude. Unless it breaks 7850 it will not easy to say even for top. It is surely going to be wild for two trading sessions, one is today and another is tomorrow.

Option mechanism is suggesting for strong support to emerge at 7800 which has higher open interest but this view may change at the breaks 7850 on Nifty spot. On higher side 7930 and 7970 should still be a tougher resistance to trade.

For today’s trading once again, I will prefer to watch for levels of 7850. Yesterday’s low was 7862. I have already expressed my view that break below 7850 will give alarming signal for fall. We have seen some bleeding mid cap stocks in past few weeks. It has added few more names yesterday. This kind of phenomenon should result a top on blue-chip indices too. I will not able to name level as top unless Nifty breaks 7850.

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Strategy for Nifty September future – Nifty September future has a low at 7906 yesterday. It bounced at a time when it was looking for a drag below 7900. It has hit a high at 8015 two days back. Pattern analysis is suggesting for a possible pullback again from a high point on intraday levels. It will face resistance at 7980 and then at 8020. Take a note that it may opening 25-30 points higher.  

S&P 500 (USA) – S&P chart is still bullish but a short term pull back it still due. Remember that now it is 100 points up move without any price correction so it may give a correction now before moving higher. It is just running higher and higher with higher top. If it breaks 1990 in the lower side then it will be a confirmation for short top. I still believe that US indices are running near short term top itself but it just needs few definitions.