15 June 2015: Nifty Elliott wave analysis: We got first close below 8000. Nervousness can drag Nifty towards 7800. Recovery is just a hope not a signal.

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

For 15 June 2015: -

On 12 June 2015, FII Sold INR – 670.96 crs and DII Bought INR 705.58 crs

We saw a low of 7940 in the last trading session and then a small technical recovery. This recovery does not have any big meaning unless Nifty tall above 8000 levels which is still looking tougher but it is very close. Above 8000 we can expect subsequent resistance above 8040 levels. I advise caution till we stay below 8000 levels. Shall we short? Slide may be more like a shock than compared to take favourable risk reward ratio.

I AM KEEPING CORE OF ANALYSIS AS IT IS. Technical charts have warning sign below 8000 on closing basis. It is suggesting or says giving a hint that we see multiple closing below 7960 then we may be in the position to say that market has done a long term top and scope for fall will open. It may be one of the biggest H&S pattern in past more than 10 years on chart. This can result a fall towards 7000 levels. It is caution time for investment. Is economy and stock market paying price for over hyped political language?

For today’s trading session, I am expecting nervous start. If it sustain below 7940 then we may see a free fall towards 7900 levels or may be much lower. On higher side we can have some hope of technical recovery but there are no such promising signals yet.

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Strategy for Nifty June future – I gained nearly 25-30 points in last trading day and booked the trade on same day. Now, we have no trade as of now. Global market may go on nervous mood. Technical charts may be favour bulls. Support may range near to 7930 level. Below 7930 we may see sharp slide. For any kind of buy signal I will depend on intraday signal. I hope that recovery should come but I am not too sure.

S&P 500 (USA) – Friday’s fall was in line with my expectation. I strongly believe that 2115 may act as stiff resistance on higher side and it can easily create another strong sell signal in this zone. Big question is will it break 2070 support mark to hit 2045. If not by June then also by July month market should take that kind of dip. Global market is in long term top formation.