Thursday, 21 May 2015

21 May 2015: Nifty Elliott wave analysis: Indecisive mode to continue with resistance in the zone of 8450-8500 levels.

You must read previous articles and watch the given chart carefully to understand this article completely.
For 21 May 2015: -

On 19 May 2015, FII Bought INR 48.06 crs and DII Bought INR 451.02 crs
We may be on some kind of resistance zone as quoted yesterday. Nifty has a high at 8440 which in accordance with resistance at 8450 levels. I still believe that another trading top may come in the range of 8450 to 8500 levels. We may be in the phase of topping global market.
I cannot deny the possibility of some hangover rise before fall. Fall is also not a guaranteed as it is just a speculation. What I mean to say that Nifty is on decisive resistance zone. Once it goes above 8500 then we may see a fresh wave for bulls. Keep this thing as note one can prepare short term trading strategy.
For today’s trading session, I am expecting a silent opening. We may see resistance at 8450+. It will face resistance as long as it is below 8500 levels. In the down side support will emerge at 8380 which may act as bear threshold too. Below 8380 we may see some sharp giving up on Nifty and in some premier stocks too.
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. I am expecting volatility on every top now. Technical resistance is at 8450 levels. Once it is above 8450-8460 we may see some quick 30-40 points of rise but then we may see fresh resistance again. Below 8400-8390 we may see easy dip.

S&P 500 (USA) – It is going in the same way and turning soft on high. I repeat that there is no momentum in the market to keep these higher levels. It is only the matter of time for a slip. Yesterday’s high of 2134+ is not invincible but it is tough to maintain such levels. I wait for a hard-core concrete sell signal. I dip and a big dip is very close to come. 

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