08 October 2014: Nifty Elliott wave analysis: As expected, we got 7840. Now, if it breaks then we can expect Nifty hitting the range of 7600 in medium term. 7900-7910 will offer stiff resistance now.

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

For 08 October 2014: -

On 07 October 2014, FII Sold INR 332.84 crs and DII Bought INR 327.65 crs

Well, it has almost came to my expected levels of 7840 but not broken yet. This is now a much known support and hence market may misguide near to this levels here and there. There are many stocks which go on multi month low in this price correction. This is alarming fact. Have a look on stocks like DLF, RELINFRA, RCOM and many more.

For today’s trading session, we just have a crucial support at 7840. I believe that break below 7840 should give us a break below 7800 too. It should happen and Wolfe wave may come in to effect. On higher side 7890-7900 may act as stiff resistance. One must note that 50 DMA comes at 7908 levels. I can conclude that zone of 7890 to 7910 will confuse bulls too if higher levels comes. I am not expecting positive for the day.

I am still saying same words. Spoiler for global market can be just one big factor – Currency market. Almost every currency of emerging market is again showing fear on chart against USD. What can be good for US market may not be good for emerging market. I am writing this paragraph from past many trading sessions. I am quoting above remark form past many days. Indian Rupee moved from 60.25 to 61.90 in past 20 days.

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Strategy for Nifty October future – It has broken 7900 levels too. We are gaining over 100 points on our short position. I need a break below 7860 with some big volume. If this happens then we can expect a fresh move towards 7600 levels too in medium term. On higher side 7910 to 7940 will be one of massive resistance. Time has come for effective breakdown.

S&P 500 (USA) – As of now, it goes as per my expectation. It is just coming at 1950. One should expect a move towards 1925 levels sooner by the end of the week. Break below 1925 will cause a test of 1900 levels. I have nothing more to add. We are sufficiently loaded with short and we have planned to hold this short for some time unless a strong buy signal emerges. Just stay short and enjoy.