04 January 2016: Nifty Elliott wave analysis: Gap down to come with disappointing global cues. Support at 7900-7880.
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understand this article completely.
For 04 January 2016: -
On 01 January 2015: FII Net Bought – INR 228.11: DII Net Sold – INR – 81.24
First trading day goes well for Indian market when global markets were
closed. Today morning global cues look disappointing as majority of global indices
are red or futures are big red. This drives weakness for Indian market future. Nifty
were very close to 7980 on Friday’s session. I am expecting 8000 for this week
even from lower levels. Technical support must be at 7900-7880. Take a note
that 100 DMA comes at 7980 and hence it’s decisive to see crossover.
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 gap down opening as a hangover
of fall in global indices future. I am expecting support at 7900-7880 after gap
down. It can be followed with a recovery. If recovery comes then chances for
8000 will be bright for this week. If not then time can be concerning.
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Strategy for Nifty January future – We got
expected bounce on Friday but opening may be too bad from Friday’s closing
levels. I like to see the magnitude of weakness in opening hours before
concluding for trade. Below 7900, we may not have great chance to see revival. If
it has to bounce then it has to sustain above 7900.
S&P 500 (USA) – As planned
earlier, I am taking this fall as an opportunity to trade on long side with a
stop loss at 2030. I still believe that first half of first month is going to
be bullish for US market too. As of now charts are justifying for a move
towards 2080 to 2100. Use any dip to add long. Buy signal is either near 2045
or may be from 2000 too. Let us see.
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