27 April 2015: Nifty Elliott wave analysis: Nifty final hope is 200 DMA i.e. @ 8255. This is decisive week and expiry week too.

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

For 27 April 2015: -

On 24 April 2015, FII Sold INR 775.46 crs and DII Bought INR 896.33 crs

All must agree that Nifty finally came at 200 DMA and still not showing any good sign of recovery. How important is this? I must say that no indices in the world can be comfortable near 200 DMA. So are Indian indices. Do not expect easy move here. Is it all negative only? If you think so then I have a ray of hope which may not be so big but important. We saw rise in blue-chip metal stock – Tata Steel. I spend more than 15 years in stock market and I can say that whenever value money comes in blue-chip metal stocks are such kind of low. Market used to protect from further lower cut. Now, either can see fresh sell off in metal too or a short term bottom is near.

I still say that do not ignore that brutal H&S pattern which is visible on chart. This has a target at 8000-7900 levels. This will come sooner or later.

For today’s trading session, I am expecting flat to positive opening. We have two crucial supports; one is at 8280 before 8245 levels. Corporate earning is just not good enough. Even Infosys has disappointed market sentiment. Once again, as there is no visible sign of recovery yet so we cannot see any safer levels on higher side.

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Strategy for Nifty May future – We are going to deal with May month future from today onwards itself as we have holiday on this Friday. So the expiry day will be last trading day of the week too. From 8400 levels we can get support at 8350 only. Shall we buy in dip? We may opt to give another try near 200 DMA. Below 200 DMA, long has big big no.

S&P 500 (USA) – After a real long time S&P came very close to 2120 levels. Do you know that it’s a fresh life time high? I cut my shorts with half percent loss. I am going in wait and watch mode. Pure technical analysis is suggesting for 2145 if it can sustain above 2120. Will it is sustained above 2120? We will get answer tonight. This is beyond the scope of prediction.