04 March 2016: Nifty Elliott wave analysis: Nifty to test 7500-7530 resistance mark by opening itself. A correction may hit from high.

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

For 04 March 2016: -

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

Once it is above 50 days moving average then it may not see easy dip. Well, but one has remember the important of 7500-7530 resistance mark. It is nothing but the previous short term low which may act as resistance now.

For today’s trading session, we may see last rise for trading purpose. It cannot be said if this rise can sustain. I strong suggest avoiding rise to trade long now unless it surpass well above 7530. One correct is due and it deserves. It can come anytime.

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 – We may see opening around 7470 but it cannot sustain. Volume is turning thin. Technically, it has moving towards extreme resistance now. One should avoid trading long from 7500 levels. Correction may hit from higher levels.

S&P 500 (USA) – Now, it is in the striking distance from 2000 levels. This is the time to go cautious. If S&P has to undergo price correction then it can come from 2000-2015 resistance zones. It is not going to be easier any more. Even if it has to go higher then also it will go under time consolidation. In short, brave bulls have done their work. Now, it is turn for second bull.