09 March 2015: Nifty Elliott wave analysis: GAP down to follow after US market selloff. Key support is at 8850 levels. Will it fill gap down?
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carefully to understand this article completely.
For 09 March 2015: -
On 05 March 2015, FII Bought INR 79.84 crs and DII Sold INR
193.54 crs
We saw some good recovery in last hours of trade in the last
trading session which must be backed by short covering only before long week
end. Things have drastically changes on weekend as US market has seen vertical
dip. Now we are on the verge of seeing a big gap down opening. If this gap down
sustain for whole day then this can be last nail on the top of 9119.20. It is a
strong possibility.
For today’s trading session, we may see GAP down opening. After
gap down we may see support to emerge at 8850 levels. Break below 8850 will
give us levels like 8800 levels. Somehow chart patterns are suggesting that we can
expect levels of 8670 in coming few days. I strongly suggest avoiding buying at
these levels even if rise comes. Trading is a different affair but investment
money will turn expensive on long term chart. Union budget may not found
favourable on minute observations. Technical resistance for trading will be in
the zone of 8950 to 9000 levels.
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Strategy for Nifty March
future – SGX Nifty is
giving hint for opening near 8910 levels. After this gap down, we may have
immediate technical support in the range of 8890-8880. Violation of this will
invite a round of panic sell off. 8950 to 8960 may emerge as stiff resistance
after opening. Will it able to fill this gap down? If not then we may see fresh
wave for correction.
S&P 500 (USA) – This is most expected dip which I was
talking about whole last week. It has trapped many above 2100 levels. Now it
has successfully broken 2096 levels and closed well below 2070 also. Most logical
target that we can expect in one go can be 2045. It seems that it is bigger
target which I am talking about but for long term chart it is just the
beginning. I have advised for shorting last week and my call is stay short.
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