14 January 2016: Nifty Elliott wave analysis: Will 7425 act as short term bottom? Today is the day for confirmation after gap down.
You must read previous articles and watch the given chart carefully to
understand this article completely.
For 14 January 2016: -
On 13 January 2015: FII Net Sold – INR 75.90: DII Net Bought – INR –618.79
We got such a smart intraday recovery yesterday and even that will not
help us from a big gap down today. All this has to happen due to bad global
cues. DJIA has slipped by 2% last night. How to read the chart now? Well,
yesterday’s low of 7425 will act as decisive support. I do not think that
Indian market can be as bad as US indices.
For today’s trading session, SGX Nifty is giving a strong hint for gap down.
I will be buyer from lower levels again. We have every signal to buy from the
support of 7425. Once again we may get a good recovery. I must remind that a
perfect bottom formation or signal of reversal is still missing due to absence
of follow up.
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 – Thankfully
we have booked our long in last 15 minutes and it was planned exit due to
missing conviction for forward. US market proved us right. Fine, we may opt to
buy again. I cannot say the levels to act. It will depend on intraday
development but do not short after gap down.
S&P 500 (USA) – How many
times we see S&P cracking 60 points from its high point in intraday session?
It’s very rare. This kind of weakness is definitely alarming. Most panic bottom
used to form in this kind of scenario but technical formations has other words.
We have wide gaps between supports. One is at 1850 and other is at 1800 levels.
Will it recover now or will it hit to break all barriers? One thing is clear
that S&P will hit 1550-1500 by this year itself.
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