06 May 2016: Nifty Elliott wave analysis: Possibility alive for the slide to continue for next week too. It’s just a pause. Target 7400.

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

For 06 May 2016: -

On 05 May 2016: FII Net Sold – INR 388.51 Crs:  DII Net Bought – INR – 251.79 Crs

Yesterday’s move came as pause in fall as this sell off continues from 7980 resistance levels. I do not see good possibility of reversal. We can just need to believe that sooner or later it will hit the levels like 7400. I expect a pause in fall and then we should use rise for shorting again.

My key expectation is – NIFTY can HIT 7400 by MAY month series and hence I am holding my shorts. Worse possible target can be 7200 too.

For today’s session, market may take a soft opening. I see a bright possibility of hitting 7600 by next week. Today is Friday and we just a positive close yesterday. If it breaks 7700 by anyhow, then we can see a possible slide towards 7600. Sequence is suggesting for another day of pause. I am expecting for a dip in second half or a recovery in second half. First half may remain dull. This is a challenging day for bull. Let us see. Expect resistance at 7800.

I hope it gave you the value of following paragraph which remains the part of my daily analysis.

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 May future – I do not see much chance of recovery but I want a recovery to come. It can generate another opportunity of shorting. Now, if it opens near 7720 as reflecting by SGX NIFTY then situation will be troubling. If it does not recover from 7720 levels then a big slide is possible. On higher side 7800 may remain untouched.

BANK NIFTY – This goes as expected and hit 16300 levels. On higher side 16750 may not tested sooner anymore. Now, if it breaks 16200 then we can expect levels of 16000 levels. I am expecting a big slide by MAY month itself. I believe that next week is going to be crucial. In any bounce it is just a short. Policy may be a killer for banking sector.