19 May 2016: Nifty Elliott wave analysis: 7800-7770 is a decisive support. Break of triangle can cause the test of 7600 sooner.

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

For 19 May 2016: -

On 18 May 2016: FII Net Sold – INR 250.70 Crs:  DII Net Bought – INR – 239.91 Crs

Nifty chart is forming a triangle on EOD chart. This is a dangerous pattern. Market is waiting for poll result and BJP may be missing edge so far. I must say that 70% chance is that Nifty pattern will go in favour of bears. We are already on 200 DMA resistances and market is in the need of trigger.

For today’s session, market is set to open lower. I am against quoting 7770 as the last best support available for market. Due to dicey moves we may not see a confident direction. I am just anticipating that market should fall from 200 DMA and on intraday moves it can fall from a top.

I am again quoting very strongly that ruling NDA is losing its grip and heading for policy paralysis again. They know what to do but they do not know how to di.

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 – 7900-7920 may again be the zone of stiff resistance. In the down side it can get support at 7820 levels. Break will cause a move towards 7770. If it breaks 7770 then we can expect a level of 7700. If BJP really miss the current poll result then we can see real big trouble hitting market.   

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.