08 May 2015: Nifty Elliott wave analysis: Recovery expected with a support at 8000 levels. Recovery target can be 8250-8280.

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

For 08 May 2015: -

On 07 May 2015, FII Sold INR 1360.69 crs and DII Bought INR 1158.02 crs

Indian rupee came beyond 64 now. This is a pain which market is feeling. There are too many reasons for this fall. One such is over promise by current government before election 2014. Where are the promises of “Good day”? Where are the steps of reforms? It looks like all such promises were political phrases in their own language. Indian market is trying to make stability between political promises and reality. I take this correction in that way only. Market was heavily over valued at 9000 Nifty. Corporate earning is still giving hint for more correction in the rest of the year.

I am keeping all those market affecting stuff on one corner and coming to technical analysis which gives money. I used levels of 8000 to add buy yesterday.

For today’s trading session, I am expecting a gap up. We already forwarded our long on Nifty Future and some stocks too. Technically, I have expecting levels of 8250 to test in recovery. Take a note that 200 DMA comes at 8280 levels now. Technical support is only at 8000 levels. Below 8000, it can again show panic.

80% chances is that we have tested a short term bottom yesterday only.

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Strategy for Nifty May future – We have forwarded long which we bought yesterday at 8040 to 8035 levels. I am expecting a big gap up. Technical support will remains at 8040 to 8020 levels. As of now, it seems to open above 8140-8150 levels. So, immediate support after opening will be at 8100 levels. On higher side, we can expect a good rise on the last trading day of the week.

S&P 500 (USA) – Was this bounce expected? Definitely yes and hence I refuse to take short in dip. I still have enough doubt for next trade. As of now I am expecting a test of 2100+ levels again. Then only I can conclude if I have to go long or I have to go short. This index was better than any other indices of the world. Technical support is at 2075 to 2070 levels. I do not try to buy soft buy signal which is there.