18 May 2016: Nifty Elliott wave analysis: Flip-Flop at 200 DMA is still on. Index may remain indecisive for this week too.

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

For 18 May 2016: -

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

The way Nifty has progressed we can say that Nifty is turning silent when it comes to cross 7940-8000 hurdle zone. It is a first sign of weakness. We can say that market may not able to find any decisive direction for this week if it does not fall. I am not expecting fall either. It can be here and there. This may be a time for market man to be off the index trading.

For today’s session, we can expect market to open lower. It has again pushed the market to test 200 DMA. In fact whatever is happening is due to 200 DMA. Neither bull nor bears want to leave their point. Technically, market may go to test the zone of 7830-7770 as key and decisive support. So we are again back to zone where we have started.

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 am not on trade mode here. This gave many odd signals. This may not be time to add positional trade and market may not fit for intraday either. Technical support will emerge only at 7830. On higher side even 7920-7940 looks tougher. Can we expect panic sell off at any stage? So far, my answer is no but Nifty is on stiff resistance.  

BANK NIFTY – This index is still running here and there around 200 DMA but unable to take any decisive direction. This kind of odd trading may continue. It is facing resistance at 17000 levels and do not attempt to trade long unless it goes above 17000. Somehow this is convincing me for a move towards 16200 levels sooner.