18 August 2015: Nifty Elliott wave analysis: Resistance is still at 8550 levels. Avoid higher levels for trading as “W” pattern is developing.
You must read previous articles and
watch the given chart carefully to understand this article completely.
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.
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