07 August 2015: Nifty Elliott wave analysis: If gap down fill up then we can see a good recovery. Possibly, one more rising wave left before final top.

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

For 07 August 2015: -

On 06 August 2015, FII Bought INR – 108.93 crs and DII Sold INR 111.78 crs

High for last trading session goes above 8600 and low has not sustained. This may be the sign of strength. I was anticipating for top before 8600 but I was not right. As of now, Nifty seems to see some more advance target before seeing a fall. A has to come in few trading itself. It can be either at 8600 or may be near to 8800. It is also true that sell off from high may be very brutal. What even rise comes in coming few days will remains a short term high point for the rest of the year?

As we have not seen close below 8490 so we cannot get confirmation for weakness based on Elliott wave theory. We saw US market going down last night and it may make its impact in opening hours.

For today’s trading session, one can expect a gap down. I am expecting this to fill up sooner if it has to see a rise. If it can sustain above 8610 then we can expect a move towards 8660 levels. Above 8660 this market will go under short covering rise.

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Strategy for Nifty August future – Nifty future may take a dull to negative start. Key point for trading will be at 8565 levels. It may not find it easier to break. If opening goes above 8590 then we can see a fast recovery. I do not suggest shorting this market for today. It may recovery and it may invite a short covering rise before any further fall.

S&P 500 (USA) – Weak bounce of past few days has got sold yesterday and it hit a support area around 2070 as low were at 2075 levels. Equally, bounce also begins yesterday itself. Technically it may again try to hit 2095-2100 levels. One may get tired of seeing same levels from past many months but we have no choice. We can think for the downside target around 2040 if it breaks 2070 anytime. Will it happen? Yes, it will happen but it will pick its own time.