05 January 2016: Nifty Elliott wave analysis: Will recovery come? If yes then it has to save 7760 at every cost.

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

For 05 January 2016: -

On 04 January 2015: FII Net Sold – INR 667.15:  DII Net Sold – INR – 222.79

Do have a paint to fear from Chinese fall? My answer can be yes for sentiment basis. Rest other technical set up remains same. 7760 is the next crucial point to watch out for. As long as it is above 7760 Nifty can see a recovery. I still feel that below 7850 bulls goes out of hand. So, first thing is that it needs to settle above 7850. Surprisingly 7980 worked as resistance in uptrend with massive sell off last day.

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 moderate to flat opening. After opening keep your eye on 7760 levels. I am expecting a recovery today. If not today then problem can be serious on charting. Let us see.

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Strategy for Nifty January future – I have no take for recovery so far. I like to see the development for today if it can recover. Technically 7780 should act as good support. Equally, below 7780, no buy at any cost. Big question is – “Will it revise above 7850-7870 levels?” May be yes, may be not. Buy recovery on strength.

S&P 500 (USA) – I have already said that it has multiple time support at 2000-1990 levels. Last night, S&P bounced from 1989 levels which is just on dot support. Technical charts are suggesting that this recovery will have life as long as S&P sustained above 2000 levels on closing basis. Remember, most short term bottom forms with a panic.