25 May 2016: Nifty Elliott wave analysis: Now, 7770-7830 will act as zone of resistance before derivative expiry. I do not see easy reversal against the possibility of fall.

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

For 25 May 2016: -

On 24 May 2016: FII Net Sold – INR 815.53 Crs:  DII Net Bought – INR – 989.95 Crs

The double ton gain on Dow Jones Industrial Average is showing strength on Nifty but it does not have its own inherent strength. It makes me forced to say that today’s gap up may go as trap. As long as Nifty is staying below 7830 we cannot say that we can expect good gain from current levels. Technical indicators are not supportive for gain.

For today’s session, Nifty may open higher and may try to give a test of 7800. Take a note that 7770-7830 is a zone of resistance now. Nifty may hover in this zone but I do not see much chance of closing going around there. I am on wait and watch mode from here till derivative as derivative expiry is not my favourite time to trade. Can I think of short covering? I believe that it can go reverse. Forced long trade will see unwinding.

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 June future – It is looking like 50 points gap up now. Afterward I like see the retrenchment from that level. If Nifty June future go below 7800 after opening then it is highly likely to see that market may end up on weak note only. I am anticipating resistance to be in the zone of 7830-7850. I hope to see a weak trend after a gap up. I still stick with my short deal.

BANK NIFTY – Bank Nifty has shown resilience against the fall from past two days. 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.