23 September 2015: Nifty Elliott wave analysis: We got violent dip as the impact of rising wedge. Expect more panic sell off towards 7540. nifty

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

For 23 September 2015: -

On 22 September 2015, FII Sold INR – 1052.24 Crs and DII Bought INR 378.26 Crs

Well, yesterday’s drop was indicated well by a rising wedge which I had mentioned from past few days. From nowhere indices dropped over 2% when traders were expecting 2%. If I am right then this sell off is just not about one day. It should see extension for at least three days in a row. This gives me a sense for fall till expiry day tomorrow.

Based on Elliott wave chart market under go in phase 5 for minute count. The most logical target will be a new short term low which means that 7540 need to be violated. Big question is when can this happen. Will it be by this month only? I still stick on my view that Nifty can hit 6500 irrespective of any possible recovery.

For today’s trading session, we may see flat opening to soft opening. If global situation goes worse then we can expect another round of panic sell off. Where is technical support? Do not break your head in that as many supports may violate sooner. I simply expect a break or test of 7540. Still, 250 points more to go.  

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Strategy for Nifty September future – We introduces our short from near to 7950 and it hit around 7780 by last minutes. One can expect resistance to emerge around 7830-7850 levels even if bounce comes. If panic comes then one can expect further 2% big dip. Get ready for heavy action for today and tomorrow.  

S&P 500 (USA) – This is a fine fall. We can digest with low of 1929 but I still expect that low for the week may go around 1900. I expect another heavy gap down today also although future may not indicate that. I still stick with my long term target around 1475-1500 levels. Even 100 points of bounce from any level may help to change the long term direction. Take a note that all that can happen by this year itself.