18 August 2015: Nifty Elliott wave analysis: Resistance is still at 8550 levels. Avoid higher levels for trading as “W” pattern is developing.

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For 18 August 2015: -

On 17 August 2015, FII Bought INR – 142.34 crs and DII Bought INR 183.72 crs

Yesterday’s move was supposed to be hall mark move which could have formed after “W” pattern. I sharp panic sell off in morning hour and then a shoot up in after noon hour. My view is that this kind of disturbing volatility may continue for this week.

I can conclude for resistance in the zone of 8530-8550 but I do not see any decisive direction in market now. It can swing up and down for few move times by this week itself. Some key momentum indicators like MACD is showing negative divergence which is giving a favour for bears.

For today’s trading session, I can again say that if it sustain below 8480 then we can expect another round of selling towards 8400 levels. I can equally say that based on wave count even 8500 levels are looking higher than expected. Favourable wave count is suggesting that stabilization zone for Nifty should be around 8300.

Well, Mr. Prime Minister, have look on equation of INR vs USD. Do controls before things go out of hand? The blind assurance cannot help for longer run. As per economy is concern, I fail to see any great chance with a change in power at centre.

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Strategy for Nifty August future – Trading around 8500 is just not making any great signal to trade. Up or down it can choppy from here only. Technical resistance will emerge in the zone of 8540-8560 zone. Down side support is at 8470. If it can break and sustain then we can expect a dip towards 8400 sooner. Up or down, nothing is impossible. For safer moves, just wait outside the market.

S&P 500 (USA) – It is slowly moving towards 2110 levels which may be a suitable level for shorting. So far, it is just not good for trade. Reason is simple and clear. Many times it has trapped bulls at these levels. I can expect decisive resistance at 2135 levels. There is no point to be bullish in the zone of 2110 to 2135. This 1% is something which market never succeeds to cross.