27 February 2015: Nifty Elliott wave analysis: The next key support = 8660 !!! Bloodbath below 8660 !!! Litmus test will come tomorrow for 9 month old rally !!!

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

For 27 February 2015: -

On 25 February 2015, FII Bought INR 516.06 crs and DII Bought INR 19.70 crs

It has broken 8725 and it hit a low around 8669 levels. This was expected. Now yesterday’s low range of 8669-8660 will be last hope for bulls before tomorrow. We have union budget to come tomorrow which is going to be litmus test of optimistic rally of past nine months.

I can still add, this is going to be dangerously volatile market for tomorrow. If it just sustain below 8725-8730, this will favour bears only. If it breaks 8660 then we can expect nearly 80-100 points further.

For today’s trading session, I am expecting some positive opening but it may try to be dull in first half of trade. There will be fight between fear and hope before budget. It is the time to deliver as this is full majority government and they cannot give any excuse. I have no great hope looking Rail Budget. There were no great innovation, vision and any vikas ka formula. It was same old budget which miss to quote the source of money. It was just full of promises. Even government do not know how to fulfil that formula. I saw this kind of vision document for Indian railway by UPA in 2009.

Do not give me logic that state and centre will bear the cost. Hardly any state government has any money. All of them depend on centre fund only.

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Strategy for Nifty March future – it has broken 8780 and slipped to hit 8720 levels. Nifty March future will have technical support at 8710. If it breaks and sustain below 8710 then we can see a fresh dip of 80-100 points. On higher side 8800 will act as stiff resistance. Do not buy any rise at any cost.

S&P 500 (USA) – I have nothing to change in analysis. It is another day with zero percent moves. How long can this continue? Good answer is that as long as market wants. It hit an intraday high near to 2120 levels. I can still repeat that as long as it is above 2100 levels we can hope for 2145. Still, I like to ignore to make a buy on this index.  One should wait for a sell signal on this index. On a long term chart it is near to 2100 levels from past three months.