12 May 2015: Nifty Elliott wave analysis: Third day caution but trend is up for 8500 with support at 200 DMA i.e. 8280

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For 12 May 2015: -

On 11 May 2015, FII Bought INR 169.97 crs and DII Bought INR 328.57 crs

We saw a good crossover of 200 DMA and brining bulls back to the battlefield. Two strong back to back days might result a range-bound trading session for today. I was expecting 8282 as a target but it moved more than that. Even if it became day of consolidation we cannot say that it can be weak.

Frankly, I am still retaining my views for 8500 levels. I am expecting trading support to emerge near 8280 levels. Small pullback from higher levels can just be the part of small time trading correction. Correction is just not a compulsion but it is just a caution.

For today’s trading session, I am expecting a flat opening with some initial moment of dip. For intraday trades I suggest to keep your eye on strong stocks as those can again see a second half bounce from lower levels. I am just issuing caution for third day as if it has to change the trend then this can be today. If by anyhow Nifty goes below 8280 then I may opt to make exit from long.  

80% chance is that we have tested a short term bottom on last Thursday only.

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Strategy for Nifty May future – We have long from 8040 and I may opt to exit if I sense some big correction. I still say trend is corrective up for nearly 150 points more from here. Once again it is not a compulsion. We are already making 300 points gain on long. For today it is my believe for a rise from low.    

S&P 500 (USA) – As long as it is above 2095, I will not suggest trades for bears. Equally, 2120-2125 is a zone for stiff resistance. It seems that it is on make or break levels. US indices are trading in range bound mode from past more than six months now. This is toppy structure so far on long term chart. Chances are very high for a dip which will sustain for long time. No trade as of now.