13 January 2016: Nifty Elliott wave analysis: Real strength will emerge above 7630 only. Support = 7480!!!

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

For 13 January 2016: -

On 12 January 2015: FII Net Sold – INR 1319.24:  DII Net Bought – INR – 900.99

Yesterday’s sell off has pushed Indian market again. Well, I still believe that this is not the time to opt shorting in anyway. Market is extremely oversold. Bounce is expected in this range which should come as relief rally. As long as it is above 7480 we can hope for recovery. Even if it breaks 7480 then also it can get support at 7430 levels.

For today’s trading session, SGX Nifty is giving a strong hint for gap up. Worse part is that major fall came as gap down and it looks like recovery will begin with gap up only. If gap up sustain then take this as trend reversal for short term. Above 7630 we can fairly expect 7800-7850 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 at this level. It took support in my expected range of 7500 but did not show any power for rise. If it opens around 7600 then one must for some time or some dip to see strength. Hope it will not break further.

S&P 500 (USA) – I do not need to change study. It is moving towards 1945. 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.