02 February 2015: Nifty Elliott wave analysis: First trading day of the February – Below 8770, one can expect 8700-8685 levels!!!

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

For 02 February 2015: -

On 30 January 2015, FII Bought INR 1723.77 crs and DII Sold INR 1680.09 crs

I jumped to short again on very last trading day of the week and ended week on good fashion. My correction call was not wrong expect few days of unexpected rise which came with some positive event. Such things used to happen in market. How many times you see 11 days of straight rise?

We saw selling in banking stocks and it is still expected to continue. I have already said in past that if it breaks 8870 then we can expect 8800 levels. It goes same. Now, if it breaks 8770 then you can expect further selling. Take a note one-third correction rule give us a support of 8685 levels which is too far but too strong.

For today’s trading session, expect hangover of Friday’s selling. If it opens below 8770 then things may be more worrisome. I can say that 8770 may be last hope for the bulls. Bull’s efforts may come from lower levels. Let us see. I am intended to short every rise. Long may be just an opportunity.

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Strategy for Nifty February future – You can expect 8800 as opening tick. If this happens then we may not expect a sooner support. Wave charts are suggesting that selling may intensify early this week and it may fine support near 8700 levels. So we have a long way to go on down side. On higher side, no levels are looking safer below 8900 levels.

S&P 500 (USA) – As expected, isn’t it? It slipped again from high and came near to 1990. My study remains same. Short each and every rise which brings S&P near to 2035 to 2050 area. 1990 is a support but 100 DMA is at 1970 levels. If it sustain below 1970 then we can expected something like ___ guess what 1900 also. It’s February month. US market is in consolidation from past more than two months. It is a decisive week. Will it break 1990 and 1970?