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.
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