Wednesday, 20 May 2015

20 May 2015: Nifty Elliott wave analysis: Indecisive moves may cause lesser trading opportunity. Key resistance is at 8450-8500 levels.

You must read previous articles and watch the given chart carefully to understand this article completely.
For 20 May 2015: -

On 19 May 2015, FII Bought INR 48.06 crs and DII Bought INR 451.02 crs
Nifty has given a logical resistance before 8450 levels. This is again raising a point that higher levels are not safe. I was also expecting resistance at 8450 to 8500 levels for Nifty. This may be a part of volatility near top after a bounce from 8000 levels.
We may expect such moves to continue for 2-3 trading sessions from now. It is more important to note that development of resistance at 8450 may invite another round of sell off. Take a note that 8450-8500 levels are a n-line resistance for H&S pattern.
For today’s trading session, I am expecting a silent opening. Opening quotes may face resistance at 8400 while trading resistance should emerge in the zone of 8450 levels. In the down side we can expect support at 8330 levels. Note that 200 DMA is now at 8307 levels.
80% chance is that we have tested a short term bottom on last Thursday only.
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Strategy for Nifty May future – I still believe that nifty future may not give comfortable trade on higher side. Following same it has turned volatile yesterday in second half. One can still expect such odd moves with massive volatility. We can expect resistance on higher side. Key resistance will emerge at 8410 and then at 8440.

S&P 500 (USA) – I keep my study same. It came on newer high again. I had a point to add anticipated short but I am still in wait and watch mode. Basic of technical analysis suggests that one should not try to short all-time high and I am following that only. I like to see how long can it extend. It has given a target of 2145 last year November itself. It took almost six months to come near to that. There is no momentum. 

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