12 January 2016: Nifty Elliott wave analysis: I still expect for more bounce but real strength can emerge above 7630 only.
You must read previous articles and watch the given chart carefully to
understand this article completely.
For 12 January 2016: -
On 11 January 2015: FII Net Sold – INR 1319.24: DII Net Bought – INR – 900.99
It was just too interesting session yesterday. Nifty hit a low around
7495 and then bounced. We saw a dip again in the mid of the session due to
sudden sell off in China. In the last hours, bulls came again. So, what is
next? Is it almost a DOJI?
For today’s trading session, we may see flat to small down opening. Market
is expected to be dead till 11 am. I strongly believe for a positive day
afterward. Bears have a figure, 7630, if Nifty can sustain above 763 then we
can see a dead cat bounce. Take a note that we are not too far from big wounds.
Hence, support is still at 7500-7480
levels.
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.
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Strategy for Nifty January future – I am still
focusing on relief rally for the day to continue. It can save 7540-7530 levels
to bet on relief rally. If not then it can be go to hit 7500-7490 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 hit
near to 1900 levels again but we see a bounce. This is still enough to say for
a bounce. We need to see for more recovery. On higher side it needs to revive
above 1945 levels to claim for any big meaningful recovery. 1900 may just be
the last hope. If it breaks 1900 then we can see a possibility of 1870 to 1850
levels. I repeat, it’s extremely oversold as of now. A bounce deserve.
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