04 February 2016: Nifty Elliott wave analysis: If 7360can earn respect then 7500-7530 may be possibility again.

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

For 04 February 2016: -

On 03 February 2015: FII Net Sold – INR 357.13:  DII Net Sold – INR – 144.78

I quoted for support at 7360 and it hit a low at 7350 to close at 7360. I still consider that Nifty is on good support now. I am seeing a bounce in the market. It can hit 7460 to 7500 or somewhere in this range. If yesterday’s low has some respect then market may move higher for two days including today.

For today’s trading session, I am expecting market to go up only. Consider support at 7350 and use every dip to buy. Unfortunately it is going to be gap up now.  After gap up, I will wait for some dip to act on long. My choice to buy is definitely not banking stocks. Weak horse never wins the race. Pharma stocks are my favourite.

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 will trade long today and tomorrow. I will use intraday dip to buy only ignoring all technical indicators. It is one such rare time where charting technical indicator and wave theory has different views and I am going with by wave theory based buy. Let us see if this can work. My stop loss at 7360 and target is 7530.

S&P 500 (USA) – It got another bounce from lower levels to see an intraday gain of 40 points from the bottom. This is making chart more interesting. Technically, above 1915 it will be played by bulls again. It will get intraday support at 1905-1900 levels. Be prepare, we may see another hit towards 1945 now. It may come by this week itself. It means by tomorrow.