19 January 2016: Nifty Elliott wave analysis: Nifty next meaningful support will come at 7200 only. tomorrow is 13th day.

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

For 19 January 2016: -

On 18 January 2015: FII Net Sold – INR 1203.84:  DII Net Bought – INR – 1122.80

It goes more than 8% fall from the top of 7972 which was tested on very first trading day of the year. Since then it is down and only down. Today is 12^th day from the top of 7972. Based on Fibonacci series tomorrow may be the day for the desired recovery to begin. It is equally true that market is very heavily oversold. Based on technical charts we can say that only meaningful support below 7320 will be at 7200.  

For today’s trading session, we may see a flat opening but there is no optimism. Take a note that market has not seen any panic low yet even after such a big sell off. So market may slip further. First strong sell goes below 7530 and then below 7430.  

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 – Nifty Future goes near 7360 which was expected levels below 7420. Now, will it hit 7300 too? I must say that it has every chance of hitting that level too. This market to truncate at lower pattern at some point but that point is still beyond the scope of prediction. It may not be easy trading day for bulls.

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.