01 February 2016: Nifty Elliott wave analysis: First logical target is at 7610. It can be make or break levels for the week too.
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For 01 February 2016: -
On 29 January 2015: FII Net Bought – INR 571.70: DII Net Bought – INR – 240.02
First day of the derivative month was a good one after red January month.
It gave breakout above 7500 and above 7530 as well. The next logical target is
expected to be at 7610 levels. If this target has to come then today is the
best time to hit. Be on the fair side, it can able to hit 7800 marks too if it
can see few close above 7610 levels. If it has to fall then we may see higher
selling any time after hitting 7610 on failure.
For today’s trading session, we may get a flat opening but I prefer to
trade short on bounce. My choice for second half will be shorting. If I have to
short then I will after 1 pm only. If selling comes in second half today then
it will be brutal. My expectation is if it goes below 7400 then dip can be
sharp.
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 February future – I must
say that closing above 7500 itself is so encouraging. We can expect opening around
7600 and then we may go for one more buy mode for intraday in a dip. Still a
condition, low should not go around 7540-7530 support to maintain a buy. If it
breaks 7500 by anyway then it may be first signal for bad February month.
S&P 500 (USA) – I must
say that it is delayed move. It gave a signal for 1945 few days back but it is
hitting 1945 after a mild down day. So far it is good. Cross above 1915 has
generated the target of 1945 and it travelled this long distance in a just a
day. I cannot say to buy immediately. As long as it is above 1915 it is a buy
or if it can spend time above 1945 then also it is a buy. It is safer to buy
from levels nearer to 1915 to maintain better risk reward ratio.
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