30 May 2016: Nifty Elliott wave analysis: Reverse H&S pattern has target 9000 levels. Long trades are strongly applicable as long as 8000 holds. Perfect SET UP for long.

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

For 30 May 2016: -

On 27 May 2016: FII Net Bought – INR 479.89 Crs:  DII Net Bought – INR – 69.34 Crs

Last week was decisive one. Nifty has crossed 8000 marks in its own fashion. It gave a reverse H&S Breakout which I had written on Friday too. Logically, this H&S pattern is showing the target of 9000 levels of Nifty. It just has a wave meaning that we are going to a corrective up trend against the down wave “A”.

Meantime I called off my anticipation for possibility of top. I am firm that newer top will not come but it does not mean that market cannot gain near to that. My objective to call off the short deals is that we have a possibility of 10% rally on this break out. I am not short and now I have no intention of shorting easily.

For today’s trading session we can expect the market to open higher. One can wait for some pullback of these three days of big move then plan to add long. Do not short on the anticipation of correction. Short term trend is up and firmly up. Now above 8000, it can trap bears. I do not see the 8000 levels breaking sooner but I will wait for a price correction to buy.

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Strategy for Nifty June future – I tried a small short deal on Friday but booked. Now, I will wait for a small price correction to buy. It is looking to open above 8200 levels which are just fit for long trades only.  Fine, I am not going to participate in rally as of now. I want to see a pullback and then I will add long. As long as 8000 holds on Nifty June future this market is buy in dip. Remember, as long as it is above 8000.

BANK NIFTY – It again goes as expected and remains firm. It has closed above 17500 levels. Above 17500, we can expect levels of 18000 which should come by first half of this week. Any pullback towards 17200 levels will provide the opportunity to long only. I do not think it has break 16800 any sooner now. It remains up and it can hit 19000 levels also by June month.