Tuesday, 24 February 2015

24 February 2015: Nifty Elliott wave analysis: Pre-budget up move seems to be over. Below 8730, expect further fall. Technical resistance = 8880-8920

You must read previous articles and watch the given chart carefully to understand this article completely.
For 24 February 2015: -

On 23 February 2015, FII Bought INR 601.91 crs and DII Sold INR 163.79 crs
Pre-budget rally has magnitude from 8479 to 8913 levels. Even yesterday it has failed to cross the land mark intraday resistance of 8880 and hence we saw a fall. Most important is that has closed just above the crucial 8750 marks. If it sustain below 8750 for some time then we can expect fresh dip from current levels.
We can expect wild swings in coming few days. If it does not go above 8880-8900 levels then we cannot expect fresh hope for rise on budget day. Charts are shaping to digest a move which it has to create as budget event. It is most likely to see a fall. This is what I can conclude from chart.
For today’s trading session, one can expect flat to positive opening. Immediate technical support will emerge at 8730 levels. On higher side cross above 8800 may act as stiff trading resistance. Do expect wild moves today. Rate sensitive stocks will attract volume and activities. Reality stocks have shaped up for fall.
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Strategy for Nifty March future – Opening may go around 8820 levels. If it sustain below 8800 then we can see immediate 40-50 point’s fall. On higher side, no level is going to be safer. Still, if I have to quote then 8860 and 8890 will act as stiff trading resistance. Has this market converted to sell-on-rise before budget? Answer may be yes.

S&P 500 (USA) – It goes in line with expectation. Think- a new all-time high trades has also failed to create some energy in the market. It is trading dull and silent. Only good part is that it has closed near to the high point of the day. I still believe that as long as it is above 2100 we can hope for a move towards 2145 levels. I have no great interest in trading long this time on this index. 

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