08 April 2016: Nifty Elliott wave analysis: One more close below 7570 will give us 7400 !!! Do not buy in temptation.

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

For 08 April 2016: -

On 06 April 2016: FII Net Sold – INR 493.56:  DII Net Sold – INR – 258.68

I have warned for the confirmation of top and I am getting all such signals. Nifty has closed below 100 DMA. Remember, I have already said this long back that long term trend is down. Rise is just an intermediate correction as up.

Optimistic people will say that it is just one day below 100 DMA and they will definitely eagerly waiting to see today’s closing levels. If it closes below 100 DMA, i.e. 7570 then many traders will give up their long. This makes me to say that if market trades below 7570 for long then it will give sharp fall in second half.

For today’s session, longer it trades below 7570 higher will be alarm. What shall be the target below 7570? Well, one can expect a level of 7400 in very quick succession. I do not think that it can easily cross above 7570. Even if it does so then also cannot surpass much.

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 expect a flat opening backed by SGX Nifty but I am not too optimistic as of now. We may see levels of 7670-7700 as stiff resistance but it is strongly advisable to avoid long on higher side. Wait for a sign of weakness to trade from higher levels. Note that below 7700, we may see bigger slide. Who knows it may be 100-150 points down today.

BANK NIFTY – My studies are simple. Below 15600, it has target at 15300. I am adding that weakness can see extreme very soon. Do not make any long attempt even if one two days of rise comes. Sooner or later, it can see 14000 levels. For trading we can see resistance at 15800 and a point can emerge for shorting for intraday at higher levels.