Thursday, 12 March 2015

12 March 2015: Nifty Elliott wave analysis: Nifty support is at 8670 and then at 8640-8630. Will the desired bounce come?

You must read previous articles and watch the given chart carefully to understand this article completely.
For 12 March 2015: -

On 10 March 2015, FII Sold INR 748.13 crs and DII Bought INR 290.48 crs
It is still saving 8670 support. Nifty is trying to revive near the support of 8670 but we have not seen any significant strength yet although I am hoping. It gave a bounce yesterday but got sold at higher levels. As long as it is saving 8670 we can hope for bounce towards 8800 levels. If it breaks 8670 then next support will come at 8640 -8630 levels which is 50 DMA support.
For today’s trading session, we may see flat opening with a possible support at 8670. Once it sustain below 8670 then we can expect a quick fire test of 8640-8630 levels. I do not think that fall can go much before 8638 without a positive close. If this happens then we can see fresh wave of sell off towards 8400. On higher side 8800 is my expectation in bounce. mNy stocks which has slipped massive in last few months has given some positive divergence.
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Strategy for Nifty March future – It can open in the range of 8760 levels. We will see support coming at 8710-8700 levels. Below 8700 we can expect a quick 40 points dip. On higher side it will face resistance at 8835 levels. Things may turn decisive now. It can be tougher to trade choppy moves. My study remains same as of yesterday.

S&P 500 (USA) – As expected, it is still down but a small negative last night. Can we expect price correction again this fall? Well, even if this comes then also it can get sold at higher levels. Many times 2035 have acted as support. One can expect maximum bounce up to 2055-2060 levels. I suggest shorting in the bounce if it comes. I must say that chances are not very bright for any bounce. Below 2035, it will add good confirmation for 2000. 

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