21 April 2016: Nifty Elliott wave analysis: Expect a wild attempt for 8000 levels as we saw three close above 200 DMA in a row.

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

For 21 April 2016: -

On 20 April 2016: FII Net Sold – INR 80.10:  DII Net Sold – INR – 300.90

We recommend a short yesterday. Well, I am not as bearish as of now. It is important to note yesterday’s low which was at 7877. Take a note that now market is saving 7870, 200 DMA support. This gives me a sense that one should avoid unnecessary shorting as long as it is above 200 DMA.

I still believe that we may face resistance in the zone of 7980-8000 levels. This is technical resistance as well as psychological resistance too.

For today’s session, opening may go on positive to higher side as indicated by SGX Nifty. Here is one opportunity to test 8000 levels. Well, do not ignore my long term warning sign. I am strongly firm on my view that market is running under long term down trend and this is odd almost 1000 points bounce on Nifty but not enough to say that market goes bullish. Fibo cycle is bearish.

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 – One can expect opening around 7950 and we may expect levels of 8000-8020 levels if this can hold support of 7930 levels. I am not sure about second half. We can see weakness in second half if it has to come. My first move is Up and then a Down.

BANK NIFTY – Bank Nifty has resistance around 16300-16500 levels and this is still in resistance zone. We can expect 16500 sometime today or tomorrow. Is it a bay? Well, we may see soft long trade for target around 16500. It does not have much scope to go much higher above 16500.  Big profit taking is very close.