27 January 2016: Nifty Elliott wave analysis: Even before expiry it need to sustain above 7400 to see 7530.

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

For 27 January 2016: -

On 25 January 2015: FII Net Sold – INR 91.15:  DII Net Bought – INR – 307.89

We have derivative expiry tomorrow. We hardly saw anything positive for bulls for this month. This point is definitely against bulls before expiry. Still, nifty is in heavily oversold zone. I strongly believe that as long as Nifty is above 7400 we may see downside support emerging. This applicable as long as it is above 7400 levels.  

For today’s trading session, we may get a higher opening but I prefer to trade long on dip only. gap up may not sustain. The downside must see a support at 7400. Below 7400 it will see pain again. My logical target is still in the zone of 7530-7535 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.

Please visit our ‘intraday updates’ to get further updates or to take good advantage join paid services.

Strategy for Nifty January future – We have derivative expiry this week and my view point is that if Nifty can sustain above7470 kind of levels then we can see a fresh addition of 50 points. Can it see fall in last hour again? Well, chances are here again. If it has to fall then it will fall by today also and that’s in second half. I do not see any threat for first half.

S&P 500 (USA) – I do not need to change my study. S&P is above 1900. This is my expected move on S&P which goes above 1900. Have a look. It has a low at 1812 and now it is above 1900 in very short time span. I feel that more bounce has left in the market. Can it reach 1945? This is something which is going to be interesting. So far, I am expecting up week. My logical target for this recovery is 1945 with trading support at 1875. If it has to reverse then reverse point can be only at 1905. Today is decisive day.