20 March 2015: Nifty Elliott wave analysis: The door has opened for 8400 as I was feared yesterday. We shorted top. Last hope 8600 !!!

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

For 20 March 2015: -

On 19 March 2015, FII Bought INR 1428.72 crs and DII Bought INR 53.46 crs

What gave such a brutal sell off from top? Well, it was just technical trigger. Worse part is that it came very close to 8600 levels. Note that it has again broken 50 DMA. Now, it is sustaining below 50 DMA which is showing that bulls are missing the conviction to buy this dip. I ignore above quoted FII and DII data which are of cash market. This may not have great significance.

Technical charts are suggesting that Nifty has key support at 8600. If it breaks and sustain then we can expect H&S pattern target at 8400 levels. I strongly feel that we are heading towards 8400 very sooner. We may not see buyers coming at lower levels. This is an expensive market for long term investors too.

For today’s trading session, we will see technical support to come at 8600 to 8580 levels. There is a strong possibility of lower opening or pressure at opening minutes due to sell off hangover from yesterday. On higher side 8700 levels will also act as stiff resistance. Banking stocks were key drag yesterday. Take a note that many banks may see fresh wave of sell off. Defensives like pharma try to sustain.

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Strategy for Nifty March future – We are maintaining short from yesterday’s higher levels itself. In my view, Nifty Future may go in discount very soon. Without much hesitation, this market may open a scope for a move towards 8400 levels. Technical resistance will come at 8680 to 8700 levels. Keep an eye on global cues too as it can make this as Black Friday.

S&P 500 (USA) – I am preparing this when market is running right now. S&P is at 2089 with a low at 2085. It is just going with the perfect roadmap suggested. It has failed to revive above 2100 and confirming that 2119 may be a long to medium term top.  For trading, it is still short and below 2085 it will add one more degree of confirmation for dip. We will see S&P crashing towards 2035 by next week itself.