18 February 2015: Nifty Elliott wave analysis: I expect dull trades now. Technical support is at 8800. Uptrend intact as long as it is above 8750.

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

For 18 February 2015: -

On 16 February 2015, FII Sold INR 182.80 crs and DII Bought INR 280.77 crs

We have seen pre-budget rally and this trend will remain intact as long as Nifty is staying above 8800 to 8750 levels. There are signs that market will turn choppy now. This choppy move can continue for few days before taking a final shape before budget.

I still believe that this market is for buy in every possible dip till budget. We may see some sector specific optimism on price chart. What will we get in budget? I have no idea. I have planned to deal for long till budget day only, definitely not after that budget. Somehow, Elliott wave long term chart is saying that We have a chance of hitting yearly high only in the month of February itself or maximum by early March.

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 at 2100. I was not long but equally I was not short either. It has saved me. A break above 2100 was something which I failed to see it coming at that beginning of month. I considered this rise as the same as of past many months. Pure technical charts have a simple view that if S&P can sustain above 2100 then we can expect a move towards 2145 to 2150 in this breakout. Will that come?  Will that really come?