04 April 2016: Nifty Elliott wave analysis: 7800 should be still a possibility before expiry. It’s a hope !!!
You must read previous articles and watch the given chart carefully to
understand this article completely.
For 04 April 2016: -
On 01 April 2016: FII Net Bought – INR 214.01: DII Net Sold – INR – 519.91
We have RBI’s next monetary policy review tomorrow. This will decide
the next course of action for market. I have already said for a top either at
RBI policy decision or in between earning season. So far, the best part of
market is that Nifty manages to close above 7700. This makes chart bullish
before policy decision. If this continues like this then we can expect some higher
levels before policy.
I still feel that Nifty has a chance of testing 7800 somehow. Historically,
market used to be silent before big events.
For today’s session, suppose if it stays below 7700 then avoid trading
long ahead of many big events. I am still not bearish. I am just avoiding
traded at top. Who knows I may get trap in long. Below 7680-7660 we may see
weakness.
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 April future
– I am keeping my analysis same as Nifty. I am avoiding index trading mode as
it may not give clear direction although I am anticipating some rise as long as
Nifty April future stays above 7740. Can give a test of 7800? Hope so!!!
BANK NIFTY – My studies
remains same. It has again closed on logical resistance is at 16150 where it
has closed on last Thursday. I am not saying short but I have no good reason to
buy again. Let us see. We may see resistance at 16300 as it has shown
yesterday. Do not short but equally do not buy. Wait for 05 April or some
strong trading signal. It may be a buy above 16300 !!!
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