06 August 2015: Nifty Elliott wave analysis: I still intact with my view – a possible top for August month has done with yesterday’s top.

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

For 06 August 2015: -

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

This rise took a halt near and before 8600 levels which is in line with expectation. Suppose yesterday’s high remains a top for the day then it can be lower top on chart. I must add equally that as long as Nifty is above 8490 the former reverse H&S pattern may come in force.  

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 gap down which might looks small. If it does not fill then we can expect levels of 8490 by today itself. On higher side 8600 may push a big challenge to bulls. it is strongly advisable to trade on long side as of now.

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Strategy for Nifty August future – Nifty future may take a dull to negative start. If it can sustain below 8565 then we can expect 50-60 points dip by today itself. On higher side nothing can be safe unless it trade above 8620 levels. I prefer to be short for today’s trading session.

S&P 500 (USA) – It has got a weak bounce and prepared to be sold on top again. 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.