08 June 2016: Nifty Elliott wave analysis: 8300 was on task but fuel is still ON for bulls. It may catch 8340 also.

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

For 08 June 2016: -

On 07 June 2016: FII Net Bought – INR 499.73 Crs:  DII Net Bought – INR – 46.33 Crs

Policy day ended in a good way with some profit taking at top. Well, it gave us intraday opportunity to trade but I refuse to take any overnight deal. I have quoted for 8300 levels as a possibility and it hit a high at 8295. It is definitely not the time to say that top has done. Momentum is still on and market is still looking with some fuel to move up. I strongly advise caution too. Good part is that we have done with 61.80% retrenchment mark at 8250 levels. Next logical target on Fibonacci series can be 8575.  

For today’s trading session we can expect the market to open higher. It may go around 8300 levels again to retrench before a decisive up or decisive down. As long as it holds 8200 I cannot think to forward shorts. We can hope for a better trading day ahead. Above 8300 we may see a move towards 83400 to squeeze shorts.

Do not misinterpret. I gave a long term trend as down from more than a year back. Nifty hit 9119 and then I issued for a long term top. Nifty hits a low at 6825 on Budget day this year. After such down side, wave theory had suggested for comparable recovery with three big possibilities for retrenchments, first to come at 50% at 8000, 61.80% at 8250 and 76.40% at 8575.

101%, I retain my view for long term trend down but that does not says that we cannot interprets for short to medium term of recovery. This recovery was bound to come and it is coming to make a wave [B]. Now, just imagine the magnitude of wave [C]. Higher the retrenchment, bigger fall will hit in future. If this wave [B] tries to end up near 9000 then 9119 may not be visible for many years. So, where is my long term target on Nifty? Well, it is in the zone of 6000-5500.

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Strategy for Nifty June future – We went short at 8305 and booked at 8275. I did not trade the rise but I am convinced with the rise after seeing that close. Well, it may misguide but, to some extent it can be another breakout situation if it can surpass levels of 8330 levels. This is not impossible situation. Above 8330, it can invite short covering.

BANK NIFTY – I have quoted for 400 points up move above 17700 which it has done yesterday after RBI policy. Now, Bank Nifty is on 18000 marks and momentum is still strong and hence it is opening another scope of rising wave. If this works in favour of bulls then we can expect levels of 18300-18400 but this is not going to be easy deal. Who knows top may come in that range only.