10 May 2016: Nifty Elliott wave analysis: A great reversal pushes Nifty above 200 DMA. Now, expect 8000-8050 by weekend. Buy all dips.
You must read previous articles and watch the given chart carefully to
understand this article completely.
For 10 May 2016: -
On 09 May 2016: FII Net Bought – INR 224.40 Crs: DII Net Bought – INR – 350.60 Crs
I was expecting this recovery but I have no added any trade for long
in this recovery yet. Now it gave a nice sign to trade. It has pushed above 200
DMA which is already slipping down. I am expecting a new short term high by
this week itself back by good momentum and good technical structure.
My key expectation for the week – NIFTY can HIT 8050 by Friday. Hence
buy all possible dip with suitable stop loss.
For today’s session, market may take a negative start as reflected by
SGX Nifty. No harm, it will give me all those possibility of buy. Expect technical
support at 7800. I do not think that Nifty can slip much below this support
even in extreme case.
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 have a plan to add long today and I will load many long in downside if
comes. This week may be my key week for the month when I may be active to good
extent on stocks too. Nifty future can hit 8050-8100 sooner by Friday. One needs
to be very flexible on stop loss. Volatility may be high in downside.
BANK NIFTY – I have already
said for 16750 and here it’s down in just one session. This is too much and too
rapid for a day but still momentum can move forward only. In down side if it
comes around 16500 one should long trade with stop loss about 16200 for a
target of 17500. Be flexible in stop loss and prefer to buy in dip only.
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