10 September 2014: Nifty Elliott wave analysis: Nifty will take gap down on global red. If this gap down does not fill up then we can name 8180 as top. Expect 8000-7900 levels sooner if correction continues.
You must read previous articles and watch the given chart
carefully to understand this article completely.
For 10 September 2014: -
On 09 September 2014, FII Bought INR 479.40 crs and DII Sold
INR 752.09 crs
We are going to see a gap down opening by 40-50 points of
Nifty and that’s almost looks sure. I always say that if any gap turned as bear
gap down then it may be sign of reversal in trend. What is bear gap down – A gap
down which never filled during intraday session or in one two days’ time frame.
This rally has started at 7540 and has a high at 8180 without
even 0.50% correction on closing basis. Nifty has moved much higher than moving
average support. Just think that 20 DMA is almost near 7900 levels only which
is 250 points away. So, if correction comes then it can be sharper than
expected. This is a prime reason that I advised caution at higher levels.
For today’s trading session, I am suggesting for a threshold
point at 8080 after opening. If it sustain below 8080 for 15 minutes then we
can expect 8050 levels. Further, if it breaks 8050 then we can see a drag
towards 8000 levels too. I would not be surprised if it hit levels of 7900 too
in quick succession.
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Strategy for Nifty September
future – Nifty September
future should open at 8140-8130 levels. Its Wednesday and it can be black Wednesday.
I would not surprise to see levels of 8050 by today itself. Just for today, do
not try to buy dips. If correction really starts then it can sustain for at
least 5 trading session. Normally, it corrects for 5 days if rally goes by 21
days. Let us see.
S&P 500 (USA) – Patience paid. It has broken 1990
and it is almost confirm that 2011 will not appear in the year 2014. I know it’s
too bold statement to give right now but I like to repeat – 2011 may not come
till December 2014. I have added few shorts in the range of 2000 to 2010 with
stop loss at 2020. I am eager to see market reaction at 1970 as my next target.
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