19 February 2015: Nifty Elliott wave analysis: Avoid trading if market goes dull. I plan to buy only intraday dip. Technical support – 8830. Technical resistance = 8930-8950

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

For 19 February 2015: -

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

One round of pre-budget rally has done. This is now going to be second round. Before the next round of rally it should see some choppy moves. Ideally, we should expect 2-3 trading sessions will silence. There may be some kind of nervousness at higher end. I still feel that fall should be bought till budget. As long as Nifty is above 8750 we can expect rise only.

Pure technical charts are suggesting that we can expect 9000 before budget. After that it can try to hit 9200 if Budget get respect by market. If not, then we can expect a very sharp selloff. Remember, we have seen massive rally on hopes only. now, time has come for the current government to deliver.

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 8880+ 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. Yesterday’s high of 8928 may act as stiff resistance 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 is still at 2100 on dot. I have already said that crossover of 2100 will generate the target of 2145. Will that come?  Will that really come? So far, it is on dot 2100 and turning silent. This may be treated as ‘make or break’ levels. It will get technical support at 2092 and at 2080. I still suggest to avoid trading on this global index.