08 January 2016: Nifty Elliott wave analysis: A relief rally or a black Friday? Last hope – 7530!!!

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

For 08 January 2016: -

On 07 January 2015: FII Net Sold – INR 1051.74:  DII Net Sold – INR – 190.86

This is just third time in past more than one and half year that Nifty has closed near 7550 levels. A big warning sign has emerges. It can do much damage in coming months. Have a looks at the weekly chart posted. How horrible it can be. You can expect a relief rally anytime but final destination is too bad.

Let me clear what weekly charts are saying. A full 1500 points of fall is possible from 7500 levels. I have no idea if it gives 100% result what it is showing on theory but the target lies near 6000. Sorry, if words hurts you but this is what I feel. I do not see Nifty going at 8000 anymore in easier way.

It looks like H&S pattern is taking its effect. Well, if H&S pattern goes on its true mode then 7200-7100 is the possibility. Meantime Nifty is over sold for short term and intraday chart. This says that market may ignore MACD positive divergence and sooner or later it will hit 7200-7100 levels. After that 6500 will be the figure which people will talk about.

For today’s trading session, we may see a gap down or flat mode. Today is the most suitable day to expect a relief rally if it can save 7530. Let us see.

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Strategy for Nifty January future – I am focusing on relief rally for the day. It can save 7530 levels to bet on relief rally. If not then it can be another black Friday and 7450-7400 may be the next figure to talk about. Let us see what is about to come. No one can be confident on any call right now. This is a phase of panic for traders. Deal in some suitable options as futures can be wild anytime.  

S&P 500 (USA) – It looks like what I was expecting for December is coming in January. It has broken all possible supports. It has broken even 1960 to hit almost 1940. Its heavily oversold in current zone and a bounce deserve. It is crystal clear what is coming this year for stock market. A massive consolidation for whole 2015 and showing warning sign from very first day in 2016. Is 1550 coming?