05 October 2015: Nifty Elliott wave analysis: Now expect a festival based dullness for whole month in the absence of any trigger.

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

For 05 October 2015: -

I must say that RBI gave a great booster and market has saved. Still, based on charting formation we cannot say that we cannot see impact of long term H&S pattern. It is still effective and we are just hovering here and there at n-line. If it can save 7940-7900 support levels then it may invite some higher levels around 8100-8125 but major sign of strength is still missing.

All says that market wants some reason to move. Take a note that market is entering to earning season. Depending on the outcome market may try to decide the direction.

I strongly like to add that market is entering in festival mode. We used to see choppy moves before Diwali whenever big trigger is absent. Right now, we are almost in the same situation. One should trade less for this month.

For today’s trading session, we may see some higher opening backed by good rise in US market. If it goes around 8000+ levels then this will be a market avoid for trading. In the downside it will get support at 7900. Once it breaks 7900 then only bears can think to cook something big.

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Strategy for Nifty October future – I am avoiding this range as I see a potentially dull outcome from trade now a day. I like to trade small now. Up or down, do not expect big moves of 100 points now. For today’s trade it is a buy above 8060 after opening. It can be a sell below 7990. I am assuming that opening to go around 8030 levels.

S&P 500 (USA) – It hits 1950. This move came after a low of 1870 and it seems that it has done most of the recovery target. It has completed one down wave from 2135 to 1870. This led us to say that one bottom has done even though I am expecting a bearish week. What I mean to say is that 1870 will act as support now. It will show some choppy moves and then it may break 1870 by next month.