23 January 2015: Nifty Elliott wave analysis: Prepare to handle another gap up and 13th day from the low of 8065. I still hope to see this as short term pop up top.

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

For 23 January 2015: -

On 22 January 2015, FII Bought INR 592.79 crs and DII Sold INR 578.53 crs

Near to 8750, I have a view for price correction with crucial Fibonacci resistance emerging at higher end. Suddenly world is in full rush with events like series of rate cut and a newer stimulus. I had few Nifty put to try the luck before yesterday’s big event, where I am surely going to lose money. Nifty is likely to surpass 8800 and 8800 may not be visible in opening minutes. It means, we have another gap up. Whatever momentum says but this is simply a dangerous market to trade.

Just think – it is going to open near 8850. Where is the opportunity to trade long? I had few important Fibonacci resistances where I am failing on my correction call. I will not trade with this gap up again. Today is 13^th day from the low of 8065. It can be easily said that Nifty has almost given 10% rally in 2015. Take a note that a 10-11% rally is maximum for a single wave historically.

I am wrong on correction call but I am definitely close to get a top. I have no trade and levels for today. It can open here and there 8850. I like to watch the developments. Let us see what is coming now. Participating in over stretched rally can give money but those money comes with full of high risk.

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Strategy for Nifty January future – Nifty is likely to open higher by 70-80 points. It will not easy to deal afterwards. I had few 8700 put as I took small risk. I am willing to hold but no planning to average it. How much higher can Nifty extend without correction? I already had a view yesterday that a short term top may come in the day or two. Today is second day. I hope to see a top. If this happens then a sell off is likely after gap up.

S&P 500 (USA) – Fine, it happened and goes against my expectation, no matter how. We got a close above 2060 levels. I was hoping for a last pop up rise before sell off. A big series of rate cut and stimulus came to save global market and making stocks cheaper even at life time high. I have no idea how history will name these events. I have no take for the day. I like to first observe today’s move.