09 June 2016: Nifty Elliott wave analysis: Nifty may looks tired but sending enough move to make confuse with consolidation. If up-move comes after consolidation then target is 8575.
You must read previous articles and watch the given chart carefully to
understand this article completely.
For 09 June 2016: -
On 08 June 2016: FII Net Bought – INR 529.16 Crs: DII Net Sold – INR – 257.76 Crs
So far hardly market is moving on any great tradable note. It has just
one achievement that it is sustaining above 8250. It has just not sustained but
still showing desire to move up but I am afraid that fuel is running short. This
kind of moves does not give any pleasure to trade index. I still see 8340 as a
possibility unless it breaks 8200.
For today’s trading session we can expect the market to open higher. It
may go around 8300 levels again to take an attempt for 8340. I must repeat that
there is no single sign of weakness yet although it looks tired. If it breaks
8340 barrier then 8575 is also possible. Is this a tiredness or consolidation
for another up move? We cannot make easy distinction. Let us see. It is safer
to trade running stocks rather than touching Nifty.
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
–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. So far, market is not on decisive
mode to trade. Technical support stands at 8250 levels. Trade may not be easy
in choppy sessions.
BANK NIFTY – I retain my
views in this choppiness. 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.
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