08 February 2016: Nifty Elliott wave analysis: If gap down can sustain 7450 levels then 7530 is still a possibility.

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For 08 February 2016: -

On 05 February 2015: FII Net Sold – INR 606.83:  DII Net Sold – INR – 706.02

I was expecting 7500 and it came. From a level near to 7500 we may have a chance of pullback. This pullback seems to come in the form of gap down as suggested by SGX nifty. This gap down should not make market bearish so far. I believe that it can able to move towards 7530 after a gap down start. Is a top coming near to 7530? I must say that it is litmus test.

For today’s trading session, I am expecting market to open with small gap down. It may be around 7450 but nothing to be panic. This gap down may not sustain at lower levels. I believe for 7530. It may come by today or by tomorrow then a possible top. Top at 7530 is just an indication and it is too early for confirmation.

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 should analyse my study from the possible opening point at 7480-7870. I believe for support at 7460-7450 levels. It this does not break then bounce is very obvious. Below 7450 I will have no hope for bounce. Time is on to act.  

S&P 500 (USA) – It has failed to sustain above 1915 and eventually came at 1880. Shall we be bearish again? Well, something is not right. Technical charts are suggesting that if it can sustain below just 1870 then we may have reasons to believe for a move towards 1825 to 1800. One should prefer to be bullish above 1915 at least. No long till then.