05 August 2015: Nifty Elliott wave analysis: A possible short signal will emerge if Nifty close below 8490 levels.

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

For 05 August 2015: -

On 04 August 2015, FII Bought INR – 118.70 crs and DII Sold INR 112.55 crs

At one time Nifty went in favour of bear’s with a low around 8450 marks and then it makes a comeback to close on relatively better note. Still it has a negative close after see-saw move. There were no rates cut but hopes remains on top from next monetary policy. I consider these days as odd days for trading. Still these events used to be trend decider.

Just based on short term time cycle on Elliott wave theory, we are getting a crucial threshold. If it closes below 8490 then it can reverse the trend. On higher side 8600-8650 will act as stiff technical resistance.

For today’s trading session, one can expect a flat opening. Can it challenge 8565? It may not be the case for the day. As we saw a negative close yesterday and so today is a crucial day. If it get a follow up on negative side then we can get an opening for down side.  

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Strategy for Nifty August future – Nifty future should take a dull start. On higher side before 8610 it will get resistance around 8580 also. If it starts trading below 8500 then it can invite bears. Anything in the zone of 8500 to 8580 may not be tradable easily.

S&P 500 (USA) – There is no change in analysis. Just as past many months, it has moved above 2110 for small time to challenge 2135 but lost the steam. Now again breaking 2095 to create a moderate sell signal. If it closes below 2095 then it has bright chance of hitting the support of 2070 once again. It is still difficult to say if it can break 2045-2040 support levels. I still believe that S&P has great chance of breaking 2000 marks anytime.