Thursday, 9 April 2015

09 April 2015: Nifty Elliott wave analysis: Nifty is forming resistance around 8730-8750. Cross over can add fresh strength.

You must read previous articles and watch the given chart carefully to understand this article completely.
For 09 April 2015: -

On 08 April 2015, FII Sold INR 479.18 crs and DII Bought INR 382.54 crs
Nifty is near to 50 DMA and turning choppy. I can say that there is no any sign of weakness yet but there can be a pause. In true sense, if it can able to sustain above 50 DMA which is at 8730 then we can expect further rise. When I say this to sustain above 8730 then I would like to see some trades above 8750. Can we get? It will be interesting to see.
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 (~8750) 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 on positive note. If this can sustain above 8730-8750 then I would like to trade long side. Moreover, I feel that a downside may come by next week but final move maybe bullish by second half of the month.
Technology stocks look good to buy.
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Strategy for Nifty April future – As long as it is staying above 8730, I can say that there will be a bright possibility of buy only. I still look for buy in dip move. Trading support will emerge at 8730 and 8710. On higher side 8800 is also a possible target. Above 8800 it may be furious. Furious for fresh move or furious for correction?

S&P 500 (USA) – It was a small positive close day. This makes no sense to change my study. Near to 2080 is no trade zone. One can either short near 2096 or buy near 2040 levels. One should wait for decisive move to come. Let this move come to trade. If one is holding short from higher levels then one can hold. A move for down side will come and a long term top may emerge after the end of these choppy moves on long term chart. 

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