Wednesday, 30 March 2016

30 March 2016: Nifty Elliott wave analysis: Support 7570 is working so far. Can it take “U” turn from this support?


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
Nifty got sold at top again to close near 100 DMA support. I have already quoted for support at 7570 which has not broken yet. We have derivative expiry tomorrow and market set up for a gap up today. It may not be a big one but definitely a meaningful one.
I still keep my words of caution. Take a note that 7650-7670 will act as zone of resistance. Only if it can surpass above 7670 then only I can opt to buy for retest of 7740. Failure @ 7670 will be a sell on rise again. As we are near to expiry so I will take real time call only.
For today’s session, I am expecting positive start. It may be in the zone of 7650-7670 itself. After opening it need to maintain support at 7630. If not then a dip may hit. This time 100 SUPPORT and 7570, all may be tested.
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 am seeing a possible resistance to come at 7670-7680 levels after a gap up. If this can spend time above resistance then only it can be a buy. Based on pure charts, it can turn a SELL either @ top or the break below 7630-7620 levels. What’s coming a day before expiry?

S&P 500 (USA) – It turned a great day on Wall Street last night. It has crossed 2045 and moved by 10 points more. I had a conviction for 2100 levels from past few days. Only thing is that this rise was expected next week. No worry if it comes earlier. As of now I am seeing the possibility of 2100. It may come by this week or next week. 

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