24 April 2015: Nifty Elliott wave analysis: Banking stocks are adding additional pressure. Nifty to get support @ 8350 > 8285 and then final @ 8245 !!!

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

For 24 April 2015: -

On 23 April 2015, FII Sold INR 276.83 crs and DII Bought INR 559.60 crs

I have already said that above 8480 it may not be stable due to H&S formation. It is confirming my fear and gave up from higher levels. If meaningful recovery is not coming then it has a bright chance to go choppy at this point of time. I am still sure that 8480 to 8500 levels will act as resistance on higher side. It is still 100 points away from yesterday’s closing quotes.

I still say that Nifty is forming most brutal H&S pattern of recent many years which will cause further fall on index in coming days but right now a price recovery is on. Today is eighth day from the high of 8844 levels. If you take magnitude wise it was from 8844 to 8284. It was 560 points without a single recovery.

For today’s trading session, I am expecting flat opening. We have two crucial supports, one is at 8350 and then at 8285 before 8245 levels. Market may want to see more corporate earning which is not good so far. Infosys is on radar now. I say, trade less on last trading day of the week.

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Strategy for Nifty April future – We should get a start near 8400 levels. We will get trading support at 8360 to 8330 levels. Once again anything near to 8500 will not be safe but I am expecting support to emerge at lower side for a bounce. Sooner or later it will take a dip on long term chart but shorting immediately at lower side is not just easy.

S&P 500 (USA) – My study remains same. This is consolidation above 2100 levels. I can say that US indices in the tug-of-war mode where bulls and bears both try to show their power. In normal condition, technical traders should restrict their activity near such levels. My call is short near 2110 with stop loss at 2120 and wait for decisive mode. I am just saying that if this is range bound market (as seen from past 5-6 months) then short the top end of market. Will it cross 2120?