18 January 2016: Nifty Elliott wave analysis: If support does not work at 7430 then 7360 is next possibility.
You must read previous articles and watch the given chart carefully to
understand this article completely.
For 18 January 2016: -
On 15 January 2015: FII Net Sold – INR 1123.79: DII Net Bought – INR –688.84
The flip flop continues and market closed on weaker note on Friday’s
session. Close near to 7430 is invoking possibility of further break down. This
is definitely alarming and giving a possible panic. Nifty almost sold 550
points this year so far without any meaningful energy.
For today’s trading session, we may see a flat opening. This opening may get
support at 7360-7380 levels. There is no big sign of recovery so far. I must
say that unless Nifty closes above 7630 we cannot say that recovery can
sustain. Well, we are 200 points away form that levels now. I am not taking any
call before opening today.
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 – it has
broken 7500 and goes for straight sell off of 60-70 points. This is concerning
as sell off came in second half with close at lowest point. Let us see if it
can take support at 7430-7420 levels. If not then 7360 cannot rule out.
S&P 500 (USA) – This is definitely
too much. There is no great sign of recovery yet even after fall of 200 big
points. This is alarming too. Whatever sign of recovery comes that dies on very
next day. This kind of pattern is indecisive. Hence, we need to see three day
recovery in a row to say that market is in path of recovery. We can just hope
that recovery should come this week.
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