22 October 2014: Nifty Elliott wave analysis: NIFTY may hit 8000 marks by today and it is looking all good before Diwali. There is no sign of weakness so far at higher levels. Support after gap up = 7970-7950 !!!

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

For 22 October 2014: -

On 21 October 2014, FII Bought INR 32.40 crs and DII Bought INR 68.94 crs

A bounce came from 7723. I have already quoted for a move towards 8000 levels since lower levels itself. It seems that we will see levels near 8000 by today itself and a good rise tomorrow during Muhurat trading. I have strongly quoted for ‘not shorting’. Hope you are not short. Things are not so simple. Most of the rise came in gap up formation. This is not good for market health.  

Elliott minute wave ‘c’ emerges at 7730-7720 levels and now we have a good chance of hitting a higher wave. This rise can extend up to 7950-8000 levels. I hope that it will maintain support at 7850 to 7825 and then it can take a final move. I am hoping for optimism on Diwali day which can give 8000 levels too.

For today’s trading session, we will see a much stronger gap up. This will come due to massive rise in US market. If you remember, Indian market had shown relative strength when it was falling. Technical charts are suggesting that if it stays above 7940-7950 then 8000 must come on card. Now if it goes in gap up then hardly anything will come for intraday traders.

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Strategy for Nifty October future – Opening seems to come in the range of 8020 as it is indicated by SGX Nifty. Technically as long as it is above 8000 levels, never ever try to short. I have already warned traders from shorting from lower levels. Reasons are very clear now. My worry point is only one, i.e. gap up. Else, everything looks fine before Diwali.

S&P 500 (USA) – I have said for 1925 above 1908. It has not only crossed above 1925 but also manages to close above 1940. I have said for good bounce when it was trading below 1850 levels. Well, I was not so sure for this kind of quick 100 points bounce but bulls are so powerful. Now, this has come for consolidation. Moving forward it will face resistance at 1960 to 1974 levels. I must be clear, so far there is no sign for shorting.