27 March 2015: Nifty Elliott wave analysis: Its pattern with high degree of warning. After a technical recovery Nifty can tank below 8000 too.

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

For 27 March 2015: -

On 26 March 2015, FII Sold INR 521.23 crs and DII Bought INR 687.09 crs

What a way to end the March Series. It has closed on day’s low as well as lowest point of March series. You can refer to the chart how crucial it was. Let me update first – 200 DMA is at 8165 and 100 DMA is at 8530. News flow from Yemen has turned heavier over any technical view and this may remain same. I am keeping news flow at the corner.

Technical recovery is also a basic rule just like technical correction. We can hope for correction but market has biggest threat now. Can technical recovery sustain? My answer is NO. Sooner or later it will break 200 DMA also. I may trade for a bounce but I will avoid all short term to long term buy.

For today’s trading session, I am expecting a cautious opening and then a support can either emerge at 8300 or it will break to make another bad day. On higher levels we may not see any reliable resilience for market unless it go above 8400 to 8430. Selected stocks may perform but broader market may remain weak.

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Strategy for Nifty April future – It has opened yesterday near 8550 and then tank down further to 8450. Now, this can never be easy to short this kind of fall which comes after gap down. For today’s session, we may get opening around 8450 and support to some at 8420 levels. Should I buy? Let us see. It depends on intraday strength but I strongly warn that Nifty April future may see levels of 8000 also.

S&P 500 (USA) – To make it choppy, S&P recovered from day’s low. I still believe that we may get few choppy trading sessions before a fresh wave of fall. If we get some bounce in this process then it will be better for bears. I found some upper range for this range bounce activities. The level can be around 2075 where we can think to add fresh short. Do not opt long in recovery as recovery may fail anytime.