18 June 2015: Nifty Elliott wave analysis: I do expect more recovery on index. Least target for recovery above 8100 should be 8180-8200 levels.

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

For 18 June 2015: -

On 17 June 2015, FII Sold INR – 940.91 crs and DII Bought INR 1447.07 crs

I was expecting this bounce towards 8100. What I was not expecting was the selloff in last 15 minutes. A high at 8136 was looking convincing. I must add that market is attracting short covering time to time now days which is perhaps happening after real long time. I still keep caution study a part of my study although I am in buy mode.

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 a flat start or above 8100 levels on Nifty. If it can sustain above 8100 then it may try to retest 8136 levels. If resistance has to emerge then it need to emerge only near to 8180 levels. In the down side it will get support 8050 levels.

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Strategy for Nifty June future – I got a test of 8100 but I did not booked my long yet. I should have taken profit on high but this happens on optimism. I still believe that Nifty can advance high. I am still cautious but I believe for re-test of yesterday’s high. Technical support is at 8050 levels. I am equally ready to book my long on any sell off kind of situation.  

S&P 500 (USA) – Let us keep the study same. Bounce continues and advances towards 2100 levels. Can we expect some more bounce? Yes, there is still a room to go near 2110 to 2115 levels. Technical support will be at 2090 to 2085 levels for trading moves. It is not an easy task to figure out which top will be final but this is equally clear that S&P do not have intensity to move higher. Let us see. It is eighth month of consolidation.