Wednesday, 8 April 2015

08 April 2015: Nifty Elliott wave analysis: 50 DMA hope is still alive. We may expect 8722 based on chart.

You must read previous articles and watch the given chart carefully to understand this article completely.
For 08 April 2015: -

On 07 April 2015, FII Bought INR 143.98 crs and DII Sold INR 326.06 crs
RBI policy goes as non-event and it was widely expected. RBI has forced banks to reduce lending rate. This is good but late move. Well, I do not think that it has any big impact on stock price. I am again keeping such news flow on one side.
Technical charts are saying that market may go in consolidation mode with a range from 50 DMA to 100 DMA. This is giving me a range of 8535 to 8725 ranges. It is equally true that momentum indicators are giving me a positive direction for market.
For today’s trading session, I am expecting opening near to 8670 levels. It may try to move towards 8722 in meantime. Rise may be limited from 50 DMA which may act resistance but it is still 70-75 odd points away. 8600 to 8580 may act as support before 100 DMA.
One should keep an eye on rate sensitive sectors. Somehow auto stocks are showing sign of strength.
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Strategy for Nifty April future – Yesterday’s last hour recovery has changed views as it brought Nifty to almost high point of the day. We may see some hangover opening. If it opens around 8750 then one should prefer to avoid initial hour trade. If I have to buy then I can prefer to buy only and only dip. Not the rise.

S&P 500 (USA) – It hit 2089 as a high last night and then slipped to hit 2076 to close on lowest point of the day. This is showing and reflecting that 2100 levels will act as stiff resistance. I am feeling that it is going to hit the range of 2050 to 2035 levels. Charts are so boring on long term chart. It is showing that 2119 will act as long term resistance but still a big short signal is missing.  

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