26 August 2015: Nifty Elliott wave analysis: Time to say TA-TA BYE-BYE to bulls. Long term target goes as bad as 6500 !!! (No more conditions)

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

For 26 August 2015: -

On 25 August 2015, FII Sold INR – 2080.01 crs and DII Bought INR 1963.09 crs

Sequence is shaping so bad that DOW Jones gave up all gains last night and closed with massive fall from high point of the day. This event has forced me to release “the scariest charting analysis”. Hence, it is here. I spotted for long term top. I spotted for target 7800. I was almost right on dot on most time. A high chance is that I will be right on this too.

One can easily observe the H&S pattern emerging with two possible n-line, one is at 7940 (I tried long on this but failed) and another is at 7725 (last hope). It will break and it will hit a technical target around 6500. Is it going to happen tomorrow? No. I am giving a price analysis and the long term tern has changed. This target can be expected in next few months. Usually, panic can cause more fall so target may be extended on lower side.

I had a plan to buy around 7800-7700 which I was supposed to do today but now 101% I have changed my mind. I will be off from any investment for rest of this year.

For today’s trading session, we are going to see a gap down and I have to book my loss on my forwarded long position. I was prepared to digest adversity and here it goes. Sometime these risk back fire. By close we were earning more than 65 points. Picture has changed with DOW fall.

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. Situation is really alarming. Even a small rise in crude oil price will result rupee hitting 70. I am adding more. Prepare to see a very nasty devaluation on Indian rupee too. Do not get surprise if crude turn half from here too.

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Strategy for Nifty August future – Well, I was gaining 65 points by close but today I have to book loss which I will take without much hesitation. Equally, i was prepared for this on contra side. Fine, if I may be lucky enough then I may recover this by today itself. I am not going to trade long any more on any condition unless it goes above 8080. Now, how can I expect 8080?

S&P 500 (USA) – I quoted yesterday as. “We can expect a relief resistance at 1950”. One can check yesterday’s high. It is just dot at 1948 and then slipped. We may get time based consolidation or we may not get as we already saw 8 choppy months. If one wants to know the possible target then one must have a big heart to digest. I am saying this as it has failed to cross above 1950. Well, fall could be as bad as 1475-1450. TA-TA-BYE-BYE for bulls.