05 March 2015: Nifty Elliott wave analysis: One follow up of sell will generate the target of 8670 for Nifty. Technical break point support = 8880

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

For 05 March 2015: -

On 04 March 2015, FII Bought INR 2786.24 crs and DII Bought INR 16.89 crs

A surprise rate cut came by RBI and we saw a strong gap up opening yesterday which eventually got sold brutally at top. I wrote both the things in past few days, a rate cut and a top indicated by wave theory. It goes same as road map suggested. Big question is – What is next?

Remember, if top got sold at top in this way (the way it has sold yesterday) then it is most likely to assume for top formation. I strongly suggest not getting trap by this rate cut. Strongly saying, rate cut is not logical at this moment. It seems that government assume that rate cut can do all miracles. Have banks pass this rate cut to lender?

For today’s trading session, we may see some flat opening. It will get support at 8880 levels. If it breaks 8880 then we can see a sharp selling towards 8800 levels in quick way. On higher side 8960 to 8999 will be zone for stiff resistance. One more negative day and we will see a scope for the retest of 8670 levels.

Please visit our ‘intraday updates’ to get further updates or to take good advantage join paid services.

Strategy for Nifty March future – SGX Nifty is giving hint for opening near 8960 levels. We will get immediate trading support at 8930-8920 levels. Technical charts are suggesting for a move towards 8920. After that 8910 will act as next key threshold. If it breaks 8910 by any chance then we will get another round of brutal sell off.

S&P 500 (USA) – S&P has not found any easy way to cross even 2120. We saw a low around 2087 but finally it settles above 2096 levels which is a key threshold. I believe that it is a weak bounce from low. Equally it must have given stress to bulls too as they are also knowing that this is longest rise on long term chart. This psychology is the cause that market is not reacting much at all-time high too. Use any rise to short with stop loss 2120. I will be happy to see if it can break below 2096 again and gives a close below 2096.