15 September 2014: Nifty Elliott wave analysis: Monday’s opening will be lower by 50 points backed by poor IIP data and poor global cues. Will it break below 8050 now? If yes, then expect 8000 on NIFTY !!!

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

For 15 September 2014: -

On 12 September 2014, FII Bought INR 182.80 crs and DII Sold INR 208.44 crs

IIP and CPI data which came on Monday has not favoured bulls at all. So, suddenly all hope of quick recovery goes away. I have already said that recent better IIP data was just a base effect. Adding more pain, global indices are weak now. All such events are hinting me to see a possible opening near 8050 levels on NIFTY.

Here is a most important question – Will it break 8050 levels on 15 minutes chart?

If this happens then we will not see any fresh efforts by bulls due to wide gap of moving average support. I expect market to enter in the range of 8000 levels if it breaks 8050. It will be complex week if it saves 8050 again. I cannot deny any possibility.

For today’s trading session, opening may come in the range of 8060 as indicated by SGX Nifty. So far, I am watching for just one event – a day where market closes at lowest point of the day but that day has not came yet. As long as this even does not occur or we do not close below 8050, it cannot be named as corrective move. It is just a time correction.

 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 is down by more than 50 points right now. After opening, it will get support at 8070 to 8060 levels. Below 8060, bulls may stop their quick effect and it can hit levels of 8025-8000 levels in quick succession. It will face resistance at 8100 to 8110 after opening. It will be interesting Monday if it goes below 8060.

S&P 500 (USA) – It hit a low at 1980 and closed with the loss of 12 points. Right now, S&P Future is down by 7 points and giving hint for negative opening for US market. We still have 12 hour to open. The fact is that if it opens below 1980 then it can quickly slip to 1970 levels which is already my first target for correction. As long as S&P is below 2000 marks, I will say that we will not get 2011 in 2014 anymore. Note- 2011 is high point of S&P, it is not the year 2011.