Tuesday, 24 March 2015

24 March 2015: Nifty Elliott wave analysis: 100 DMA support should play as crucial support and threshold before derivative expiry.

You must read previous articles and watch the given chart carefully to understand this article completely.
For 24 March 2015: -

On 23 March 2015, FII Bought INR 417.41 crs and DII Bought INR 403.91 crs
We have derivative expiry this week and market is coming very close to 100 DMA which is at 8515 levels. Market is in soft trading mood. I believe support to emerge at 8515 levels. If not then it can see a slide towards 8470 to 8400 levels sooner. Market may come on decisive mood today.
The way market is slipping softly and silently we can sense that there is a sign of gradual sell off at every higher level. All this is happening when global market has not shown any remarkable distortion. This kind of moves always deserves caution. Have a look on banking index. It is not respecting any support.
For today’s trading session, I am hoping for somewhat down opening and then a decisive support will emerge at 8515. If it sustain below 8515 then we can expect further fall. If it has to recover then 8515 should act as good support. Market has almost defined its supports, one is at 8515, second is 8460 and then last at 8400.
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Strategy for Nifty April future – It may open in the range of 8630 levels. If it breaks 8610 levels then we can expect further slide towards 8550 levels. We should expect a recovery from the level of 8610. I am not betting for recovery but I am expecting. Let us see if comes or not.

S&P 500 (USA) – I do not think that I need to change my views towards market yet. Just think, it’s moving around 2100 since November 2014 onwards. It is not breaking higher from past four months on long term chart. This move is somewhat similar to rally like 2007. I still give all important to 2119-2120. Unless it breaks higher above given levels, I have no point to be bullish. In the downside, I will wait for the break of 2096 to add any short. 

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