03 September 2015: Nifty Elliott wave analysis: The last hope for even most optimistic bulls is 7665. Below 7665 it should hit 7500!!!

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

For 03 September 2015: -

On 02 September 2015, FII Sold INR – 1573.42 Crs and DII Bought INR 880.27 Crs

We are witnessing close below 7800 levels on Nifty. Now, it has just one last hope level which is at 7665. Once it breaks below 7665 we will see a move towards 7500 levels. Sooner or later it will come. I must say that on longer term and short term chart this market has already given breakout on down side with one break below 7725. Confirmation point came from failure at 8080 levels.

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 flat opening. Reason for this flat opening is massive rise in US market otherwise it would have been another big negative close today. Well, after opening we can see bears resuming their duty. If things go the way I am thinking then I am ready to see a level near 7500 by today or by tomorrow.

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Strategy for Nifty September future – I was definitely expecting 7850-7800 levels. If we get even small follow up of trades in favour of bears then it can easily wash out towards 7650 levels too. It is supposed to happen very sooner. I suggest shorting every possible rise. No higher levels can be safer for bulls.

S&P 500 (USA) – When there is a certainty of fall then we do not mind any bounce. Technically, a trade near 1950 may try to generate momentum for bulls but if they fail then punishment may be bigger from here. I can repeat, every rise will get sold. My choice to short is the levels near to 1990. Upcoming two trading sessions for this week may turn bad for US market.