22 December 2015: Nifty Elliott wave analysis: Keep a close eye on 7850-7870 as next strong buy will come above this.

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

For 22 December 2015: -

On 21 December 2015: FII Net Bought – INR 37.37:  DII Net Bought – INR – 62.70

I have already said not to panic at lower levels. We saw good bounce and Nifty is near to 7850 once again. It is important for Nifty to sustain above 7850-7870 levels. I still believe that it Nifty can sustain tall above 7850 then we can see further 1% rise on index.

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, we may see a flat opening. For today I am not advising to buy dip. What I want is to buy above breakout price. That breakout price can be above 7850-7870 levels. We need to see the clear sign of strength as if reversal has to come then that will also come from current levels only. This is on sandwiched pattern on candle chart.

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Strategy for Nifty December future – I am expecting a flat opening. If this opening can sustain for first half and then try to challenge higher resistance then it can turn for a buy anytime. Cross above 7870-7875 may give us 7910-7940 levels by the day itself.  

S&P 500 (USA) – It has saved support of 2000-1990 and hence we saw the bounce. Good part is that this one day bounce tried to come near 2030. If it can able to sustain above 2030 then we can see another good extension of rise which used to come from support levels. Note that market has digested the rate hike in a good manner. Be a buyer at dips.