09 September 2014: Nifty Elliott wave analysis: Nifty is at 21st day of rise from 7540 without any correction. Technical says caution for higher levels but where is caution from bulls? It’s rising but alarming.

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

For 09 September 2014: -

On 08 September 2014, FII Bought INR 1162.98 crs and DII Sold INR 508.37 crs

I have suggested for yesterday that above 8150, it will invite bulls again. We are on 21^st trading session from 7540 levels. Take a note that 21 is another very crucial Fibonacci series. It is just not making sense as one sided rise. Magnitude of correction can be minimum of one-third of total rise. It means that we cannot expect technical correction much below 8000 levels.

Core of technical analysis is suggesting that as long as it is above 8000 marks, bulls will just buy anything or everything. Suppose, if it crosses 8190 levels then we can expect Nifty moving towards 8240-8250 levels too. It is at a stretch rally from 7540 which never corrected practically on daily chart.

For today’s trading session, market is supposed to open on optimistic note with some positive. There is nothing much to apply. Previous high of 8142 will act as threshold support. As long as it is above 8150-8130, we cannot have anything to talk for negative except surprise sell off.

Higher levels need caution but it is moving without any caution. I have purely have no idea when can it correct. It has crossed all possible levels and all possible time frames. Last word can be on 21^st day with here and there one – two day away.

Please visit our ‘intraday updates’ to get further updates or to take good advantage join paid services.

Strategy for Nifty September future – Nifty September future should open on flat note after yesterday’s sharp rise. Technical charts are suggesting that it has support at 8170 after opening. Below 8170 we can expect some signs of pause but it will give clear signal during trading hours only. I still say that it has scope for a move towards 8250 to 8270 too unless it really get NASTY sell-off Today.

S&P 500 (USA) – It hits a low at 1995 and recover to close at 2001. So, once again low is higher than 1990 which is confirming that it is an important threshold. Take a note that it is choppy near 2000 levels from past 10 trading sessions. Even a small push can cause a fall below 1990 to make 10 day’s low. Once it goes below 1990, it will see a nasty sharp sell-off. I have observed a fact of past 500 points on S&P – it always correct with news other than technical. No single price correction was purely technical.