26 May 2016: Nifty Elliott wave analysis: Expiry can end with BULL’S TRAP target of 8000-8050. I do not trade expiry day.

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

For 26 May 2016: -

On 25 May 2016: FII Net Bought – INR 495.08 Crs:  DII Net Bought – INR – 337.20 Crs

Its unexpected gain for me but this kind of odd moves used to come on derivative expiry day. If you look on chart then one can come to know that market has hardly done anything great in past one month. If market has to test 8000 levels then today is the best day to deal with.

I do not used to trade expiry day. My anticipation is – A TRAP way can set up to eat all short with a high around 8000-8050 levels. DO not short till expiry. Let it go.

For today’s session, Nifty may open flat to high. Nifty get a support at 50 DMA with hide and seek game. As it’s up after a gap up so it was tougher to deal. I expect the gain to continue towards 7992 or some higher levels. I am anticipating a TRAP wave to come for bulls. do not remains long after closing minutes on index.

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 – I earned a loss on my last short deal in some over confidence. It may come as I was much focused on bearish pattern but still I make a better exit in my view. I am not going to trade today. Neither have I advised anyone to trade. I can say that Nifty June future can hit as high as 8050-8100. Let us see.

BANK NIFTY – This is the index which was saving bulls and kept them in race and finally it did the same move. It hits 17000-17100 levels. Now, it is make or break time. Whole market direction will depends on this index. The time is on. Can it hit 17350-17500 which can be next ambitious threshold? Support stand in the zone of 16800-16700 where 200 DMA is running.