25 May 2015: Nifty Elliott wave analysis: Expect another dull trading day with resistance at 8500 and support @ 8420!!!

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

For 25 May 2015: -

On 22 May 2015, FII Bought INR – 211.42 crs and DII Bought INR 237.62 crs

We are in derivative expiry week now. There is nothing so great to trade. We saw a dull trading last week. Nifty is experiencing resistance but there is no any significant weakness yet near top. I have anticipation for resistance to emerge in the zone of 8450 to 8500 levels. It has entered in the same range now.

If this market does not fall then it will turn choppy in this range which is just making trading dull. One should prepare for some decisive move anytime now. If it picks to go higher then also it can be wild but chance of going up is less. Equally, there is no sell signal.

For today’s trading session, I am expecting a silent to negative opening. Before expiry it may turn volatile but technical signals are just justifying for dull moves only. Firstly, we have to wait for trading range to get open. I hope that trading momentum for bulls will favour above 8500. It is just my hope. Technical support is at 8420-8400.

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 do not see big trading range even now. Technical resistance at 8490-8500 levels while support can emerge at 8420-8400 levels. One should trade less in this kind of choppy days. Let us see what comes.

S&P 500 (USA) – Once again it is choppy on new life time high and this is most irritating part. Trading range has also turned smaller. From past more than six months US indices were hardly in lime light. This kind of choppy behaviour at top may be the indication of long term top. I have no trade of now. Trading support is at 2120-2115. I am interested in shorts but not getting any kind of confirm signal. It’s matter of time. Will it really hit 2145 which we have projected in November 2014.