23 March 2016: Nifty Elliott wave analysis: Longer it sustain above 100 DMA, it can give 7900 also on or before expiry day.

  

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

For 23 March 2016: -

On 22 March 2015: FII Net Bought – INR 1095.44:  DII Net Sold – INR – 930.37

Today is the last trading day of the week and market will open directly on Monday with expiry week. This fact can restrict market from going higher. It is equally true that as long as Nifty is staying above 100 DMA we can expect a UP and may be a very UP expiry.  

So far, I have anticipated for 7800 on rise but I must add that if market gets desired fuel then 7900 may also be possible. I have a strong view that market will make a top with rate cut.

For today’s trading session, Market may open flat but with dull trade. I do not prefer to trade today. Technical charts are saying for an up move to sustain as long as 7650 levels. I still expect 7800 but I have no idea about timing due to holidays.

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 7730 only. It will face technical resistance at 7740-7750. If it can surpass 7740-7750 then one can expect 7800 levels on higher side. Technical support should emerge at 7650 levels. Shall we buy dip? Well, only time can answer. One thing is for sure that if it miss 7740-7750 on higher side then it is a sell for some limited gain. Alter sense is buy above 7750.

S&P 500 (USA) – I am keeping my study same. Market is looking under consolidation mode before any decisive move. It is still likely to move towards 2100 as long as it holds 2030 levels. I am seeing a rise after consolation but for long term direction this market is exit on any rise. Trades may not be easy as range can be small.