24 February 2016: Nifty Elliott wave analysis: Below 7100, do not buy at all as it can hit 7000 levels too.

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

For 24 February 2016: -

On 23 February 2015: FII Net Sold – INR 289.66:  DII Net Bought – INR – 257.93

Wave theory gave a caution signal at 7260 and we got a dip of more than 100 points. This reflects the importance of wave theory in any kind of market. Now from 7100 levels, we are on second make or break level. If it can make then we can see fresh rise. If it slips below 7100 then a dip is very much possible which can drag Nifty below 7000 too.

For today’s trading session, I am expecting a flat opening. The time is on for the test or break for 7100. If it stays below 7100 then one must avoid long. Dip can be sharp and impressive. I am expecting levels of 7000 also if it breaks 7100. One can take that upcoming Union Budget may be disappointing for market.

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 March future – I am dealing March Future now. Technically, it has support at 7110-7100 levels. Well, if it breaks these levels then we may see further massive sell off towards 7000 levels. On higher side bulls attempt will get some meaning only if this can stand above 7170 which is not going to be easier.

S&P 500 (USA) – This is expected dip from 1945. This makes a sense as it may represent a desired consolidation. US market charts may not have any big sell signal sooner although buy signal is also not so impressive. Market may undergo consolidation mode. If I have a choice then I will favour buy on dip. My views are applicable for global trend too.