27 May 2015: Nifty Elliott wave analysis: Another time, below 8320, it can hit 8260 and then straight to 8200-8150 !!!

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

For 27 May 2015: -

On 25 May 2015, FII Bought INR – 114.81 crs and DII Bought INR 123.85 crs

This dip is in line with my expectation. Yesterday it has challenged 200 DMA on down side. Basics of technical analysis are suggesting that below 8320 (which is 200 DMA) we may see some impulsive dip which should be because of nervous nature of investors. Equally, we are just one more trading session away from derivative expiry of May month series.

If 8500 is a short term top or say a trading top then we have chance of hitting 8200-8150 as next level of support which is giving a scope of further 2% fall at least from here. Expiry can make things more odd and volatile. Adding more spices, US indices seen a massive dip last night. We have STBT on Nifty future.

For today’s trading session, I am expecting a big negative opening. If it fails to recover after initial dip then we may see panic sell off too. Technical charts are suggesting that below 8320 we have chance to see 8200-8150 as next range of key supports. You may expect trading support at 8260 before that.

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Strategy for Nifty June future – We had short on May Future from 8380 which we booked @ 8345 and then make a switch to June series from 8370 which we hold. Now, it is close to make a break below 200 DMA support. One 200 DMA breaks then we may expect a panic sell off. Nifty June Future can slide towards 8300 to 8260 as of now.

S&P 500 (USA) – This is the dip which I have talked in recent few days. Hope traders have saved themselves from a bull’s trap. This is a key level to watch. I feel that long has done for now and a decisive dip is on its way. After all, this is a range bounce indecisive market from past more than six months. Below 2115 to 2120, it has generated a sell signal. It may have first target in the zone of 2095 to 2090 levels.