03 February 2015: Nifty Elliott wave analysis: All eyes goes on RBI again for rate cut. Technical support for Nifty = 8750 and 8685 !!!

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

For 03 February 2015: -

On 02 February 2015, FII Sold INR 629.97 crs and DII Sold INR 224.07 crs

I took my short out when Nifty future was trading below 8830 levels and then I never opt to trade short. With some sharp intraday rise in noon session, decision turned right. Equally, I am not long either for overnight. All eyes goes on RBI again and there are people who expect further rate cut. In a simple line, RBI is unpredictable right now. They can do anything. They may cut rate or they may not cut rate. I just like to pass this event with bank hand.  

Technical charts or Elliott wave charts, both are saying for halt in this rise. We almost got a fairly 240 points correction from all-time high which is just less than 33% of price correction. One-third correction rule gave us a support of 8685 levels.

For today’s trading session, just pass first half. I am interested in trading those hours which will be free from the impact of events. Technical support will be at 8750 and then at 8685 levels. I will not consider anything safe even on higher side unless it sustain and spend time above 8830-8850 levels.

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Strategy for Nifty February future – My target of 8800 was very close yesterday before bounce. I suggest one to wait for RBI outcome to deal fresh now. On higher side 8930-8950 may act as resistance but that also depends on RBI outcome. N the lower side, 8800 may offer good trading support. It will be interesting if it breaks 8800 levels.  

S&P 500 (USA) – 200 DMA is moving around 1975 and hence a bounce came. This bounce may be another weak attempt by bulls. So, question is should one try to buy these bounce. I still say no. Just use bounce to short which go in the area of 2035 to 2050. Technical charts are suggesting that there may not be easy cross above 2050 levels. Let us see, yesterday’s rise will washed out sooner. Remember, once it breaks 1970 then there will be no bounce to take out even 2000. I hope for 1900 as target for February month. This is my least expectation.