Monday, 31 August 2015

31 August 2015: Nifty Elliott wave analysis: If bounce fails at 8080-8100 then it can retest 7940-7900 levels.

You must read previous articles and watch the given chart carefully to understand this article completely.
For 31 August 2015: -

On 28 August 2015, FII Bought INR – 56.41 crs and DII Bought INR 847.43 crs
On Friday’s session we saw a big gap up but it has failed till last. Still, Nifty has closed above 8000 levels. Is this impressive for bulls? So far, my answer is a strong no. I have quoted for a resistance of 8080 and Nifty has almost slipped from the same resistance.
One can easily observe the H&S pattern emerging with two possible n-line, one is at 7940 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 another gap opening. This time it is on down side. If you see the pattern it is repeating as up-down structure in term of opening. If it goes like this then we can see Nifty taking support at 7940-7900 levels only. I still quote for resistance at 8080-8100 levels.
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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. So many gap trades may create confusion for supports and resistance. Technically, below 7980 it can see another round of fall towards 7940-7900.

S&P 500 (USA) – Nifty has tried it’s best to recover on Friday’s session and finished quite well. Still, we can see resistance emerging at 2000 levels which used to be support earlier. Technically, we can see another round of sell off this week too. Right now S&P future is trading with loss of 1%. If things goes like this then we can see 1924 as weekly target. 

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