11 September 2015: Nifty Elliott wave analysis: A bounce from 7700 will deserve a resistance at 7850. Some relief will come above 7850 but that will be “The Strong Points for CAUTION”.

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

For 11 September 2015: -

On 10 September 2015, FII Sold INR – 121.19 Crs and DII Bought INR 66.60 Crs

For yesterday I was expecting a fall and we got that. Good part was that it has not broken the low which it has tested on 25^th August, i.e. 7667. Eventually it has moved higher to name it has “U” turn. I exploited both moves using options. I strongly suggest that traders need to be very cautious from unwanted outcome for bulls. Patterns may looks for recovery but betrayal for bulls will be a possibility on every rise.

Time is on and clock is ticking for the possible big dip. This kind of trading pattern used to come once in eight years. On broader view, Nifty is just making attempt to test to n-line again. Technically, failure of this will cause a dip towards 6500 levels. Remember, I am talking about big 1300-1400 points of wash out. Although, I used to trade long for trading then also, I cannot hide this fact.

For today’s trading session, we are going to see a silent opening. We will again see ample resistance to emerge at higher levels in the range of 7850. Above 7850 it may give some relief to bulls but that will again be the sign of caution. At some suitable points I will add short.

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Strategy for Nifty September future – We took a long on Nifty 7900 call from 73 levels which has already closed at 120 levels. Now, I may opt to book profit on this trade and I may go on side wise mode rather than going to fresh long. Higher chance is that it will see betrayal at higher levels again. Do not stand with long on weekend.

S&P 500 (USA) – Well, I consider these moves as small attempt to save market by bulls. After few months people would regret why not they have shorted in the zone of 1950-2000. I still believe that bull’s attempt towards 1990-2000 is providing an opportunity to add short. Do take a note that before mega event of this decade, i.e. the September fed meeting, market may go choppy to nervous. I do consider this is going to be “THE most crucial fed meeting” and betting on outcome as “Negative” which can trigger 20-25% sell off.