17 February 2016: Nifty Elliott wave analysis: Expect technical support at 7000-6990 as decisive support. A three day rise should come anytime.

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

For 17 February 2016: -

On 16 February 2015: FII Net Sold – INR 964.19:  DII Net Bought – INR – 590.73

One day of joy vanishes in a day for bulls. Nifty has almost washed all its technical support for intraday in second half. So far, SGX Nifty is giving some sign of relief but not looking so impressive. Is it like market is sensing a poor budget? This may be true. Technical charts are not saying that we can see fresh downside from here onwards.

For today’s trading session, I am expecting market to open on cautious note. If market can sustain higher then market should advance towards breaking 7200 levels. Upcoming three trading sessions may be very crucial. I am expecting support in the zone of 7000-6990 levels.

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 – It hit near 7042 as low which is very shocking to see. I am expecting support at 7000 levels. One can again expect a pullback if it can sustain above 7100 levels. Take a note that I am considering opening near 7080 levels as indicated by SGX Nifty. I was hoping for a strong pullback before budget and I am still expecting same.

S&P 500 (USA) – It came at 1895. This is expected in line with my expectation. Technically, if it can stay beyond 1900 then we can expect most prominent target towards 1945 levels. We may see some intermediate resistance at 1915 levels too. This market is seems to be buy in fall. Threat may not be over yet on long term trend but a short term bottom may be close before a up move. If this works then 1809 remains a short term bottom.