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.