12 September 2014: Nifty Elliott wave analysis: Hourly chart may emerge with H&S pattern with n-line at 8050. Close below 8050 will give target of 7920 levels. Question is – Will 8050 break?
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For 12 September 2014: -
On 11 September 2014, FII Bought INR 433.55 crs and DII Sold
INR 530.71 crs
We again saw a good pullback in last half of trade. It has
broken 8080 and came near to 8050 with a low at 8057. At one time, it was
almost 50 points rebound before cooling off. Only noticeable part is that it
has lower high and lower low from past three trading sessions in a row. Still
it is above 8050 support and bulls are showing their activity.
Looking at hourly chart, I have a feeling that it is forming
H&S pattern with n-line at 8050. Close below 8050 may guide this market
towards 7920 levels. 20 DMA is now at
7980 levels. I have quoted a level of 8111 yesterday. It has failed to break
8111 in second half of trade.
For today’s trading session, I am suggesting for a threshold
point at 8050 after opening. If it breaks then we can see some good selling as consensus
is for 8050 as support. On higher side 8111 and 8132 may offer good resistance.
I like to add that market has not corrected the way I was thinking. These corrections
are slow and not even impressive to name as correction. It may just be time
correction. If it does not break 8050 then it cannot be price correction.
Today is last trading day of the week. If it breaks 8050 then
only we can expect something good for correction if not then it can again see
pull back from low. It has not yet closing at lowest point of the day.
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Strategy for Nifty September
future – Nifty September
future hit a low 8072 but rebounded to close at 8116. SGX Nifty is showing
opening near 8100 levels. I suggest shorting if it breaks 8072, i.e. yesterday’s
low. On higher side 8150 is a resistance and only cross above 8150 will be meaningful.
Actual support may be near to 8060 only. Break below 8060 will give confidence
to bear for 100 points slide.
S&P 500 (USA) – What we are witnessing is tremendous
bulls attempt to save supports. It hit a low at 1986 and closed at 1997 which was
also day’s high. So far, it is still below 2000 psychological levels. Nothing has
changed so far in term of technical chart. It is juts consolidating near 1990
area. A decisive close below 1990 should give a push. I still hope that this rise
from near to 1980 is to form right solder.
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