21 April 2015: Nifty Elliott wave analysis: A brutal H&S pattern is developing with fear of fall towards 7900-8000 in short to long term.

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

For 21 April 2015: -

On 20 April 2015, FII Bought INR 108.00 crs and DII Sold INR 60.18 crs

For some time keep technical analysis at one side as here is something very serious to deal. Big question is, “Is this the worse quarterly earning season?” there is nothing called perfectly bad or perfectly well in stock market. We are in a situation where corporate earning goes through a litmus test against its share price.

I say, so far this is worse corporate earnings for past many years. Have a look on technical chart now. An H&S pattern is in formation. This is most severe H&S pattern formation. If it comes to act then 8000 to 7900 on Nifty is very much possible. Based on Elliott wave chart too, it is justifying 8000-7900 levels.

This market is clearly a sell on rise market. If market wants to recover then there is just one possibility that it is falling from past four trading sessions.

For today’s trading session, I am expecting flat opening on cautious note. We can expect some nervousness. From 8448 levels we may not be in great shape to recover either. Most trading decision will depend on online development. It is something where one cannot plan much. I had a plan to buy the dip but I gave up except buying Hexaware which was perfect yesterday.

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Strategy for Nifty April future – We can expect opening around 8460 levels. Big question is will recovery from here. I must clear. Any short term recovery if comes will fail at higher levels. Short this market in 2-3 days of recovery. Technical support may come at 8420-8400 levels only. it will well half percent away. No higher level is safe anymore.

S&P 500 (USA) – I considered 2074 as key support levels and it worked perfectly to give a bounce. S&P came at 2100 levels once again. Once again, question is what is coming next. I still say 2120 will act as stiff resistance. I cannot change my view for shorting above 2100 levels as long as it is failing to cross 2120 levels. I will be happy to add short @ 2110 levels if I get.