Friday, 18 December 2015

18 December 2015: Nifty Elliott wave analysis: I said for profit taking from 7850 but it may not be a big one. I may opt to buy in dip again.

You must read previous articles and watch the given chart carefully to understand this article completely.
For 18 December 2015: -

On 17 December 2015: FII Net Sold – INR 638.01:  DII Net Bought – INR – 366.23
I have said for profit taking to emerge from a level between 7800 to 7850. We saw a high yesterday at 7850+. Now we are about to get a gap down which is fairly accepted based on chart. Down the line, 7800-7780 may act as good trading support.
One must look on positive divergence on MACD. It is really a huge one and can be capable to nullify the effect of H&S pattern which has emerged on long term chart. If this goes right then we should buy every dip. It’s too early to conclude hence it is just a view so far.
For today’s trading session, I may opt to buy the fall after gap down. I am expecting an intraday recovery.  I may plan to buy in the zone of 7800-7780. I see Nifty going towards or above 7900.
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Strategy for Nifty December future – I am expecting a trusted support at 7780 levels in gap down. Suppose if it opens with gap down and able to save 7780 then we can expect a intraday rebound. Below 7780 do not attempt any long trades. Days may be dead if trades below 7780.

S&P 500 (USA) – It was not entirely unexpected. A profit taking from levels near to 2070. Well, once again I repeat, S&P never goes for comfortable trades near 2100. It does not matter how much time it has spent in that zone. So far I am not bullish or bearish on US indices. If things has to favour bulls from lower levels then 2030 must be protected. 

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