17 March 2016: Nifty Elliott wave analysis: 7400 has turned as “U” turn support. Do not remain bullish @ 100 DMA, i.e. 7630.

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

For 17 March 2016: -

On 16 March 2015: FII Net Sold – INR 625.58:  DII Net Sold – INR – 680.16

I have strongly quoted for the short term support at 7400 and Nifty took a “U” turn from 7405. We unwind our short and opt long on few out of money call options. It looks like we turn lucky with support at 7400 levels. I am must add, I will give up long in time by today itself.

For today’s trading session, Market may open at 100 DMA which is running at 7629 levels. This is prime reason that I am not much interested to buy again. There is a talk and strong hope of rate cut in next monetary policy review. Take a note that if these turn shy at 7630-7650 then an intraday profit taking is expected.

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.

Please visit our ‘intraday updates’ to get further updates or to take good advantage join paid services.

Strategy for Nifty March future – I am not active on index future now. We worked on out of money call options but we will give us today. If possible, I may opt shorting near 7650 with some small stop loss. Let us see if this works but firstly I have to give up my out of money call options. I must say, I am expecting a strong rate cut.  

S&P 500 (USA) – I am not on trade on this index as quoted earlier. I am waiting for 2030 to be taken out. It has shown multiple sign of this cross over in past few days and it may able to surpass. This is just a hope. If this happens then we can expect a move towards 2070-2085 levels. This is best past of US market, a reliable recovery used to come on the time when people want it.