23 May 2016: Nifty Elliott wave analysis: Expiry week can give us target of 7600. How will it come?

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

For 23 May 2016: -

On 20 May 2016: FII Net Sold – INR 743.86 Crs:  DII Net Bought – INR – 597.49 Crs

It has closed below 7770 on weekly closed and today is first trading day of the week. Now, I am seeing a possibility of weakness to continue up to 7600 levels on Nifty. We may see frequent odd pull back. Every pullback will face resistance at 7770-7800 levels.

For today’s session, market may open little positive as reflected by SGX Nifty backed by global strength. I do not see much chance for Nifty to revive at higher levels. We may see resistance in the zone of 7770 to 7800 and then a further slip. Logically, this may get technical support at 7700 for intraday. Below 7700 we may expect a panic sell off.

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 anticipating for 7700 levels on expiry week at least and here we are on. We may see higher opening but it may turn weak on higher side. One thing is for sure that one should not stay short if Nifty May future crosses 7830 levels. Do not remain short above this level. Remember, we may see odd moves on expiry week and caution is always advised before expiry.

BANK NIFTY – Bank Nifty has shown resilience against the fall. This is perhaps the only point that I am giving edge to the bulls. a prime sectorial index is saving market from the possibility of big cut. The time is on; it can either make or break levels. We have technical support at 16100-16200 levels. On higher side it has resistance at 16800 levels. It is at mid way of the given range. A decisive move is required to trade.