10 March 2015: Nifty Elliott wave analysis: 34 EMA Support is at 8740 and next support will be at 8670 before 50 DMA. Sooner or later, market will only grind lower!!!

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For 10 March 2015: -

On 09 March 2015, FII Bought INR 838.30 crs and DII Sold INR 35.31 crs

Past bottom formation came at 34 EMA and one can expect some support this time too. It is giving a level of support at 8740 levels. I was expecting some support at 8800 but that fails. So now, first challenge is to test 8800 levels. Remember, it is not going to be easier anyway.

I need to put a note that below 8740 (i.e. 34 EMA) it can test 50 DMA support which will show a direction for my previously mentioned target of 8670. Is it coming? I must say that sooner or later it will come. Spoil sport come with last Thursday’s bounce and Monday’s big gap down.

For today’s trading session, we may see flat opening with a possible support at 8740. Never stay long below 8740. I tried long yesterday from lower levels but it did not work and we exited quickly with some loss. I am taking 8740 as make or break level for today. Below 8740, it will generate target of 8670 to 8650 levels. If it can make from support of 8740 then one can think about 8800+ levels.

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Strategy for Nifty March future – It can open in the range of 8780 levels. We will see support coming at 8760-8760 levels. Below 8750 we can expect a quick 70-80 points dip. On higher side it will face resistance at 8835 levels. Things may not be very active in first half. Decisive move can be expected only in second half and possibly in negative side.

S&P 500 (USA) – Technically, what is saving S&P right now? Well, a simple answer is that we got a bounce before 50 DMA supports which is at 2063 levels right now. I am sure that it is not going to be saved for too long. I have no take on rate hike yet but I have a take for a long term top to emerge. I repeat my old statement that use any rise to short only although we have shorts from 2100++ levels.