05 June 2015: Nifty Elliott wave analysis: If it breaks 8000 again then it may be first start up to wash hype over stock price which it has created last year.

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

For 05 June 2015: -

On 03 June 2015, FII Bought INR – 727.61 crs and DII Bought INR 412.66 crs

Nifty low were just above 8050. Well, for yesterday during trading hours it was in line with my expectation. We got a last hour bounce to see a relatively better close. Is that fine enough? I thought that recovery may continue but looking on SGX Nifty, it is giving hint for some odd start.

If it breaks 8050 then it has higher chance of hitting 8000 levels too. Here comes the reality test for Modi-wave and his so called ‘economic reforms’. I have no idea about politics but one thing is for sure that market is now giving up the hype which it has added last year. Indian rupee goes weaker than 64 against USD.  

For today’s trading session, I am expecting a nervous start somehow. If it breaks 8050 then I will give up all hopes of recovery. If not then we may have ray of hope for a bounce. I can just hope that it will open better than what SGX is showing. My top picks for trade will be beaten down stocks from frontline index.  

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Strategy for Nifty June future – I have long in yesterday’s dip. Majority of profit might wash out if gap down comes. In that case I will off load my long in initial minutes itself. I still hope to see a good trading support to emerge at 8050-8040 levels. If that happens then I may be buyer again. Remember we had short from 8405 and so we can effort some adventurous deals in bottom hunting.

S&P 500 (USA) – I have already projected in past few days that a movement in the range of 2100 to 2135 may be adding some sort of signal for a big fall. Last night fall might be a confirmation for decision mode by investment money. This is definitely not a level to be optimistic. I go in favour of bears and betting on a long term top. In short term too, S&P 500 can hit fall around 2075-2060 very soon.