29 March 2016: Nifty Elliott wave analysis: My call “SELL @ TOP” worked yesterday and it can work even today. Technical resistance = 7650-7670!!!

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

For 29 March 2016: -

On 23 March 2015: FII Net Bought – INR 2042.94:  DII Net Sold – INR – 2494.44

So it make a top in very first minutes yesterday and then kept on falling till last. This is what we have predicted for yesterday. Once again 7730-7750 will not take out so easily. Today is Tuesday of the expiry week and expiry effect may come in full form.

I advise strong precaution to trade on both sides. Do not take any move guaranteed. I was expecting 7600 in price correct which has done yesterday itself and we are out from out shorts now. I may opt to short again today but I am not fully convinced yet. Still, most likely that I will add short again today.

For today’s session, I am expecting flat to little positive start. 7650 is the level to watch out for resistance. Lower side support comes at 7570. Below 7570, get ready to see 7500. Take a note that 7530 support may not have meaning now.

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 – I may make a switchover to April month series. If I have to trade March Future then I will look for resistance to come at 7690-7700 levels. This may be a suitable level to short. It is too early to say if I can opt shorting or not but most likely I may opt shorting. If this works then we may see another 100 points dip from intraday high. Now, predict the top????

S&P 500 (USA) – I already have a view that US market will undergo consolidation till March end. It goes in the same way with positive biasing but almost a flat closing. This kind of trading pattern will continue for this week. I do not see any major trading opportunity. Important is the upcoming range. If it can close above 2045 then 2090-2100 can be a possibility.