16 February 2015: Nifty Elliott wave analysis: Now, pre-budget rally will get support at 8750. Cross above 8850 can give us 9000 levels too. Buy every dip till budget!!!

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

For 16 February 2015: -

On 13 February 2015, FII Bought INR 390.26 crs and DII Bought INR 95.82 crs

As expected we got a close above 8800 and things are turning well before upcoming union budget. It is optimism which is going to build before budget. We saw buying in past four trading sessions. This bounce may consolidate but fall is not likely till budget at least. Strong technical support will come at 8770-8750 levels.

So far it seems that this market is buy in every possible dip till budget. If market has to correction then also it will correct only after budget. We have eight trading sessions more to go. This government has already treated as pro-reform government and it has to fulfil market desire now.

What if market does not like budget? Well, in that case market may correct as big as 10%. Market wants to shape up well to digest all possible outcomes. I must add that Nifty may try to hit 9000 to 9200 market before union budget if global cues remains supportive.

For today’s trading session, one can expect flat opening. If it gives some price correction after these four days of rise then one should opt to buy. There is no technical threat of any big correction right now. Only thing is that market went up to a level where should be cautious. 8750 should get good respect in any price correction.

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Strategy for Nifty February future – Opening may go around 8860+ levels. If this sustain above 8880 then we may see some short covering rise too. It can give a good push to the market on higher side. I was already expecting 8900 from past few trading session.  Strong technical support may emerge at 8830 to 8800 levels. Buy every dip.

S&P 500 (USA) – It came in the striking distance from 2100 levels. This is going to be decisive. A break above 2100 may guide for a fresh up move towards 2145 but I still suggest that this rise should not be bought. Technical indicators are suggesting that we have no great conviction in this rise. Trading support may emerge at 2080 levels. I am avoiding long on this index and I still prefer to avoid. This index will turn interesting in dip only.