17 May 2016: Nifty Elliott wave analysis: 7770 support works and Nifty may take a move towards 7940 and then a flip-flop race for 8000.

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

For 17 May 2016: -

On 16 May 2016: FII Net Sold – INR 79.84 Crs:  DII Net Bought – INR – 127.91 Crs

I have quoted for a support zone as 7830 to 7770. Yesterday, Nifty took “U” turn from 7772 levels. Well anticipated levels. I took off my all shorted in that bounce which came from low and saved myself from bigger loss. This gave me edge to think fresh. Here comes gap up. Can we expect a breach of 8000 marks this time? Nifty is near at 200 DMA and it is running with flip flop mode.

For today’s session, we can expect a move with gap up. I am anticipating a possible level of 7940 for the day. Afterward, market need to take course of decisive action. Can we expect a big move? If it has to hit levels of 8000 then perhaps today is the best suited day. Technical support remains in the zone of 7830 to 7770 levels. As long as Nifty is above 7770 we can hope of a move towards 8000 levels.

One more thing, “I am strongly quoting that after few month people and market men will take about POLICY PARALYSIS of this government too.”

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 came off my short trades at 7820-7825 itself but not added long yet. As it may open above 7900 then I may have many limitation in taking fresh long. Technical support will came at 7860 and a possible top may go as high as 7980 levels. Can we get that? Let us see. Do not short at 7900.

BANK NIFTY – This index is still running here and there around 200 DMA but now relative strength goes more for Nifty. As long as it is below 16800, I may be shy in trading long but today it may add gap up. Above 16800 we can anticipate for 17000-17100 levels. I am not much interested in trading bank Nifty.