03 March 2016: Nifty Elliott wave analysis: Nifty may challenge 50 DMA range. Expectation is open for 7400-7425.

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

For 03 March 2016: -

On 02 March 2015: FII Net Bought – INR 1437.50:  DII Net Sold – INR – 593.67

Nifty is suddenly looking to move near to the 50 days moving average. Hence, I am expecting levels near to 7400-7425 as of now. Technical set up looks too bullish to believe. Technical support will remains at 7300 levels from now. Expect two days of rise more from here onwards too.

For today’s trading session, we may expect another gap up backed by SGX Nifty. Gap up may limit intraday gain but overall trend remains bullish. We may see an intraday dip due to overbought hourly chart. I suggest 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 7420. Market is still moving on expectation of rate cut. It is looking as 7410 will take out on gap up. If that happens then I suggest to wait for intraday dip to buy. Take a note that if it slips below 7320 in any dip then avoid long.

S&P 500 (USA) – It is moving towards 2000 levels. It seems that in upcoming two trading sessions it will achieve levels of 2000. We can think about profit taking only after that. Short term trading support will remains at 1960 and no threat of this up trend as long as it is staying above 1960.