28 August 2015: Nifty Elliott wave analysis: So above 7950, it can extend towards 8080 resistance mark but another massive fall it very near!!!

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

For 28 August 2015: -

On 27 August 2015, FII Sold INR – 3347.35 crs and DII Bought INR 2577.06 crs

It may deserve a relief bounce above 1950 which is likely to come with a gap. Due to a pattern up Gap-up then Gap – Down, I avoided STBT yesterday and it turn to a good decision. I still stick on my view that a real big fall is very near.

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.

For today’s trading session, we may see up opening backed by rise in US market. Technically, a first practical resistance will emerge at 8080 levels. If fall comes from this level then it can be again a brutal one but if it takes time then more extension is possible. Based on wave theory, fall can either come from 8100 or near, if not then from 8225-8280 or from near.

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Strategy for Nifty September future – I may open with a gap. This gap up may not be good for traders. Usually this kind of gap up used to fill. One can expect a post gap up sell off. Today is first day for new derivative month so bulls may try to give their best but I strongly suggest to avoid long trades for forward for this month.

S&P 500 (USA) – A bounce came above 1950 and extended too much. Well, above 1950, it was expected and it went up. Still, technical view point and Elliott wave view point remains same due to eight month long consolidation. I strongly suggested traders to avoid trades. I do not find much reason to extend it more. It can go maximum towards 2020 levels, means 1 % more.