20 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 20 May 2016: -

On 19 May 2016: FII Net Sold – INR 764.58 Crs:  DII Net Bought – INR – 1483.65 Crs

Nifty has shown its pattern of weakness. After early fluctuation it slipped by good margin and settle just above 7770 levels. This makes me to believe that I am on right direction on shorting. Now, pattern generated are suggesting me that if it breaks below 7770 and sustain then we can expect levels of 7700 by today only. No global sentiment can provide good support to Indian market anymore.

For today’s session, market is set to open lower. I am against quoting 7770 as the last best support available for market. A simple one liner study is, short below 7770 and wait for 7700 to come. It can hit 7600 also in near term. I do not find any levels safer for bulls.

80% chance is that we are seeing a toping pattern on Nifty and level of 7992+ may remain top for the quarter.

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 practically short on this market from 7860 and I am waiting for the decisive break below 7770. I hope we can get those now. Technically, below 7770 we can hope for 7700. I must add that something can cause this market to grip under panic. If this happens then market can head lower for many more days.

BANK NIFTY – Bank Nifty has closed just 1% yesterday. From the levels of 15565 we can hope for a move towards 16200 for once. Somehow pattern on Bank Nifty is not as weak as Nifty. Still, I believe that downside is very much possible but may be limited at lower end. A confirm sell signal will come only below 16000 levels.