18 March 2015: Nifty Elliott wave analysis: WAIT for FOMC outcome before taking fresh call. Support @ 8630 and move towards 8800 is still possible.

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For 18 March 2015: -

On 17 March 2015, FII Bought INR 265.52 crs and DII Sold INR 243.69 crs

Black money bill has passed by Union cabinet and it gave a fresh hope for some more reformative steps. So far, market is running on reforms and development hope which is still alive. Government of India kept on feeding good news to market. Market concern is not domestic but it is more likely to be affected by global cues which may not be sound.

Right now, I like to prefer to wait for FOMC outcome before entering in to the market. Will Jennet yellen be more hawkish this time? Who knows? I am just thinking what can be possible impact on stock price if US goes under era of higher interest rate compared to the present one. Just prepare for this. It is a bitter truth that since 2008, all global market has run on stimulus money and stimulus hope. Market has never run of its own from past seven year. So we are going to experience which we never did in history. I am not making bearish picture yet. What I am saying is that I like to see reactions first.

For today’s trading session, we may see higher opening as momentum were created in last 30 minutes of trade yesterday. It took a bounce from exact low of 8630. It is a key support now. On higher side hope for 8800 to 8830 is still alive. Although, I say that one should maintain distance from market.

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Strategy for Nifty March future – Now, today it can open in the range of 8760. This is saying for hopes to run in market. Above 8766 we can expect levels above or near 8800 levels. Technical support will be at 8740 and then at 8710. I prefer to avoid trades at higher levels.

S&P 500 (USA) – It is going as the way I was expecting. It has given up again. Now, people will wait for FOMC outcome. Will FED be more Hawkish this time? Answer may be yes. Technical support is expected to be at 2075 where it has closed. Constant trade below 2075 will generate fresh wave of weakness for a move towards 2056. I have no call on Fed outcome. I like to see the outcome before deciding short.