02 March 2016: Nifty Elliott wave analysis: Another big gap upcoming, it can extend to 7400 levels too before profit taking.

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

For 02 March 2016: -

On 01 March 2015: FII Net Bought – INR 2912.59:  DII Net Sold – INR – 829.59

A possible rate cut has driven market and it went up again after budget day. There are talks of 0.50% rate cut this year. Technically, Nifty has crossed 7100 and entered a zone of strength. We got 50 points gap up and then further 150 points more. Now, it is ready to take almost 100 points gap up today. So practically, we may see opening above 7300 levels. This push me back from trading activity due to sharp move with gaps. Still, I prefer to buy in dip.

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 – SGX Nifty is suggesting that opening can go around 7330. Market is expecting rate cut. It has crossed 7130 and got the desired boost. From 7330, I do not see reasons to act. It’s heavily over bought in price term in very small time. If a dip has to come then 7410 will act as resistance.

S&P 500 (USA) – Well, it has saved 1930 and crossed 1945 yesterday. Eventually it went to hit almost 1980. It is coming towards expected 2000 levels. Technical set up is showing possibility for a move towards 2000 levels. I am expecting trading support at 1975 and short term support at 1960. Think – if this can cross above 2000 levels then what can be levels.