21 March 2016: Nifty Elliott wave analysis: 7700 is a destination if it can stays above 7630 for some time.

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

For 21 March 2016: -

On 18 March 2015: FII Net Bought – INR 1712.62:  DII Net Sold – INR – 403.37

Well, rate cut on saving should have been highlighted by media group but no one has focused. Is this the way to recovery NPA??????????????????????????????????

Government is definitely cooking something nasty. It has no sense and please keeps me out from any illogical political logic. It has nothing to do with bond yield. Indian economy will not get any good out of these steps. I am sure NDA leaders would have opposed all such steps if these decisions would have taken during UPA tenure.

Based on wave chart, a topping pattern may emerge anytime. On other charting sense based on moving average suggests me that if Nifty manages to close above 7630 then a move towards 7700 is strongly possible.

For today’s trading session, Market may open higher a little. I will not prefer to buy in first half in any case. While if Nifty stays well above 7630 till second half then I will opt to trade long.

A reader has suggested deleting the paragraph given below. I must say that these are long term charting view with warning sign and hence it deserves to be part of everyday article.

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 expect opening around 7630 as reflected by SGX Nifty. Unless it goes above 7650, I do not think that bulls can play it brave way. Let it settle higher for first half and if it can sustain above 7650 then only think to buy.

S&P 500 (USA) – It is good to see S&P moving above 2045 with ease. Technical charts are suggesting that a move towards 2100 may come. A trading correction may hit but all such may turn to be opportunity to buy. I must say that 2030 is a level below which traders should avoid long for caution. Next quarterly earnings will be a decider for rest of the year. I must say that I still intact on my long term direction which is down and this rise is one strong bounce for exit.