Tuesday, 8 September 2015

08 September 2015: Nifty Elliott wave analysis: Will it give 8th day reversal? 7500 support should not violate to get bounce target of 7840!!!

You must read previous articles and watch the given chart carefully to understand this article completely.
For 08 September 2015: -

On 07 September 2015, FII Sold INR – 826.92 Crs and DII Bought INR 504.11 Crs
Low after low and Indian market went to 15 month’s lowest levels. This is lowest levels too since NDA comes into power. It is like people are losing hopes of real recovery which were expected from past so many months due to power change at centre.
Have a look at technical indicator like RSI. It is giving a positive divergence. It is suggesting that market may not fall towards 6500 immediately at one go. Usually, this is a sign of consolidation. Hopefully we can see some relief bounce but take a note that long term trade is down. Badly down. We are unable to see that relief bounce either.
For today’s trading session, we are on eighth day from the recent top of 8092 on Nifty. Trend is brutally down but possible reversal is likely on Fibonacci count days. My minimum target on reversal is at 7840. A up move is likely before most crucial fed meeting. Technical support should emerge at 7500. Well, supports hardly work in panic like situation.
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Strategy for Nifty September future – I still believe that market should take a bounce before any fresh fall. Technical support for Nifty this month contract is at 7550 and then straight at 7500 levels. To see any bounce to sustain- we need to see is reviving above 7700 which is too far yet.

S&P 500 (USA) – S&P took a dip from 1990+ to 1910. Is this enough? May not but for some time market may go in range. Consolidation is the part of trading activity. I cannot suggest shorting near 1900 levels just at one go. I expect some rise in the process of consolidation. Avoid shorting near 1900 levels. My preferred levels of shorts can be above 1950-1960 zones. 

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