11 May 2016: Nifty Elliott wave analysis: Book your entire long and stay away from market. A sharp panic fall may hit on Mauritius TAX treaty. No support at all.

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

For 11 May 2016: -

On 10 May 2016: FII Net Bought – INR 328.59 Crs:  DII Net Bought – INR – 68.20 Crs

Indian indices are expected to open deep in the red after the Indian government amended a long-standing tax treaty with Mauritius that plugs loopholes in the system and aims to check tax evasion. Well, I took a long yesterday and without much hesitation I will opt to book my loss. It looks like long may get trapped.

Whenever we saw reaction from FIIS, it used to be very tougher. Below 7800, Nifty is already running short of technical support.

For today’s session, market may take a negative start as reflected by SGX Nifty. No harm, it will book my loss of 50-60 points on long where I was gaining 50 point by closing minutes yesterday. Remember, trap at this level may indicate a short to medium term top. Worse is that it is coming with news flow which FII hates most.

Well, put TAX on them, I like it. At least something is happening to bring equality between investors of India and Investors from abroad.

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 was gaining almost 50 points on long  which I had added near 7870 but now I have to cut that long position on news flows. I will not take risk as this newsflow hits FII and their reactions used to be violent. Do not take risk and if you are light hearted then do not even trade. You can say, I want to run away from long trades now.

BANK NIFTY – this may not be great analysis at this situation as it may be panic like environment. I am expecting 16150 and then a massive free fall. Bank Nifty may be worse hit and fall will on news flow. Do not take adventurous long anymore.