16 March 2016: Nifty Elliott wave analysis: 7400 is a short term support. If breaks then we may see troubles for index.

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

For 16 March 2016: -

On 15 March 2015: FII Net Sold – INR 54.01:  DII Net Sold – INR – 302.31

A high goes at 7583 and then also we saw a fall from high. This suggests that we may not see fresh buyer at higher levels. I still quote that technical support is at 7400 levels. I still believe that Nifty not see easy cross for bulls for next rising wave.

For today’s trading session, we may see opening around 7480-7490 levels itself. We may see immediate resistance at 7530 levels. Will it see traditional sell off from higher levels. If it breaks and sustain below 7450 then we may expect levels of 7400 levels. General market direction may be –Down from top.

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 still keeping by view bearish for index or choppiness near 7550 resistance levels. Market may remain positive for first half but we may see selling in second half. I will prefer fresh shorting if it gives sign of weakness.

S&P 500 (USA) – Well, this goes with the suggested roadmap. Technically, 2030 is still a stiff resistance irrespective of news flow. Question is will it break the barrier? There is no question of if. As long as it stays in the range of 2000-2030 we may not see any direction. If possible then traders should avoid US indices due to range bound activity. Wait for fresh break out.