06 January 2016: Nifty Elliott wave analysis: If do not hold at 7760 then 7700 may be next possibility.

You must read previous articles and watch the given chart carefully to understand this article completely.
For 06 January 2016: -

On 05 January 2015: FII Net Sold – INR 352.42:  DII Net Bought – INR – 13.19
Yesterday’s closing is definitely not a good one. Indian market was showing relative strength. Mid cap has shown buying but overall technical levels for Nifty remains concerning. I still believe that 7760 is a key support. Below 7760 we can expect support around 7720-7700 levels. Unless strong sign of bounce come I do not suggest bottom hunting.
Positive divergence on MACD verses H&S pattern goes on fight. We saw another right solder formation with top around 7980 and that’s concerning. On long term chart 8000 may remain tough resistance. I still have enough doubt which will play for this month. To be fair, if H&S play then one can expect nifty crashing towards 7200 to 7000 levels.
For today’s trading session, we may see a gap down as most global indices or indices futures are down again.  One can expect this to take support around 7720-7700 levels only. Do not buy unless a strong buy emerges.
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Strategy for Nifty January future – I still do not consider for recovery so far based on closing levels. It seems that 7750 will also violate for today and then it can try to take support around 7720 kind of levels. Shall we buy bottom? One must wait for real time analysis as its falling knife so far.

S&P 500 (USA) – I do not need to change my study. 1990 support is still valid. 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. 
I’m Praveen Kumar, a seasoned Technical Analyst and stock market trader with over 25 years of experience in the Indian equity and derivatives markets. My passion for numbers and patterns led me to a dual career as a Mathematics Teacher and market technician. I specialize in Technical Analysis, with deep expertise in Elliott Wave Theory, derivatives strategies, and market forecasting. Over the years, my analysis and market views have been featured on NDTV Profit as a financial guest, along with published articles on reputed financial web portals, sharing insights on Nifty 50, Bank Nifty, and stock market trends. As a trader and analyst, I focus on interpreting price action, chart patterns, wave counts, and technical indicators to deliver precise market levels and actionable trade ideas. My approach blends classical charting with modern analysis tools to help traders navigate market volatility. Through VieCapital, I aim to share daily market analysis, trading strategies, and educatio…
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