Thursday, 5 February 2015

05 February 2015: Nifty Elliott wave analysis: Will 8685 work? If not then it may turn sell-on-rise market sooner. Logical supports = 8640 and 8530 !!!

You must read previous articles and watch the given chart carefully to understand this article completely.
For 05 February 2015: -

On 04 February 2015, FII Sold INR 83.80 crs and DII Sold INR 72.35 crs
Will bounce come from 8685? We saw two bounce early before 8700 but none has sustained. 33.33% correction support is at 8685 and 38% support stand at 8640. If it takes out both the support then next straight support will emerge at 8530 levels which is nothing but 50% retrenchment of whole rally.
Most of the disappointing thing for yesterday’s trading session was that Nifty has never able to even cross above 8800 levels. Hence, I gave up my entire long. My decision turned right with last 15 minutes sell off. Somehow this makes me to believe that we may expect the levels of 8530 too.  
For today’s trading session, I am expecting a flat opening with litmus test of 8685 as support. If it breaks then next mild support will emerge only at 8640. Take a note that below 8685, this will go in the hand bears only. This may turn sell-on-rise market for rest of the month.
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Strategy for Nifty February future – It has never gone above 8860 yesterday. Eventually it came at 8760. This says that more downside may be in the market. Break below 8750 may invite a scope for 8700 to 8680 sooner. Sooner means by today itself. Technical charts are saying for stiff resistance at 8800 for today’s session. Let us see.

S&P 500 (USA) – Once again as expected it has gave up from 2050+ levels. If I am right then I must have reasons to expect the levels of 1980 levels sooner in this month itself. Who knows if it comes by next week itself? On higher side no levels is going to be safer above 2050 levels. I have strong suggestion that bulls should not think to buy only if S&P goes above 2100 marks. After more than two months of consolidation February may favours bears. 

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