09 March 2016: Nifty Elliott wave analysis: First sell signal is failure at 7530 itself. If breaks 7440 then we may see 200 points dip in few days.

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

For 09 March 2016: -

On 08 March 2015: FII Net Bought – INR 775.07:  DII Net Sold – INR – 1341.51

So how was 7530? It worked in last trading session as a dot. This makes sense. Yesterday’s low is the last hope. Technical charts are suggesting for short at current levels. We have already added shorts. I am expecting a target of 7250-7225 zone based on wave target. Although, this sell signal will get better confirmation below 7440.

For today’s trading session, we may see opening around 7450. This suggest that if this sustain below 7440 in first half then we may expect big sell off in second half. Still, I suggest shorting every rise. Stop loss can be at 7530 or little higher.

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 7420 and we may get a sell signal in first hour itself. Do not try to buy index for few days. If this slips with strong sell signal then we may see a dip of 200 points in few days.  

S&P 500 (USA) – I have already said yesterday not to buy as it may turn to sell anytime. It has turned to sell yesterday and I am expecting a least target around 1960 levels. Remember, if it breaks 1960 then we may see lot of pain coming back again. So far, it’s has moderate sell signal but this can intensify anytime. Just short the rise.