15 February 2016: Nifty Elliott wave analysis: A respect for 6850 may drive a significant price recovery towards 7500+ levels again.

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

For 15 February 2016: -

On 12 February 2015: FII Net Sold – INR 398.37:  DII Net Bought – INR – 545.07

I have expected support at 6850 and saw some good reversal from same levels. Can this rebound extend today also? I am expecting this to extend. We may get levels of 7100 firstly. SGX Nifty is showing for a mammoth positive start today.

For today’s trading session, I am expecting market to open with gap up due to massive sell off past week. I expecting this gap up to remain unfilled and a recovery can extend for whole this week. Time is on for bulls to expect something from union budget next week. Technical support after opening should be at 7030-7000 levels.

I am ready to buy a panic bottom. Still my low for the year may not have done yet. I still believe for 6000. The way it came I may expect 5500 too. Let us see the recovery which can give a better idea.

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 – One can start opening at 7080 levels. A full 100 point gap up. One should wait for some price correction to buy. It should not break 7000 in any case. My favourite levels for buying may be around 7030 levels. A big recovery expected this week.

S&P 500 (USA) – This bounce came in with my expectation. Now, it is looking to move beyond 1875 then it can cross 1900 levels too. I am firm on my view that S&P has capacity to retest 1945 in this recovery before any fresh selling. It seems that we are just in mid-way of this recovery.  My call is buy the pullbacks if comes as long as it is staying above 1825.