10 June 2016: Nifty Elliott wave analysis: Below 8184, expect Nifty to hit 8130-8100 levels. Friday Caution is ON for BULLS.

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

For 10 June 2016: -

On 09 June 2016: FII Net Bought – INR 234.20 Crs:  DII Net Sold – INR – 317.74 Crs

Tiredness governed on Nifty and it has slipped. Take a note that 7 EMA is at 8200 where market has closed. Now, if it breaks and sustain below 8200 then correction can hit levels towards 8130 as of now. Today is Friday and market is likely to hit lower but only if it can sustain below 8184 which is yesterday’s low. Nifty will face stiff trading resistance at 8250 levels.

For today’s trading session we can expect the market to open flat. It may go around 8184 levels again to test support. If market closes below 8184 then we can see good confirmation for upcoming correction. Time is on and correction is expected to hit. I still repeat that current moves are sending enough confusion over tiredness and consolidation. Let us see.  

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, the moment it broken 8250, it never were able to regain and hence closed on weak note. Now, if Nifty goes below 8200 we can expect 1% immediate cut. I hope that today is going to be a day for big red followed by yesterday’s fall. Now we can expect a strong sell to emerge. Wait for weakness and hit bullseye.

BANK NIFTY – It gave up at crucial 18000 levels and corrected a little. If I am right then we can expect a big trading move in today’s trade. We can expect levels to hit around 17400 in price correction. On higher side 18000 may act as zone of stiff resistance. I must say that Bank Nifty is not as weak as Nifty. If weakness hits then Nifty should see first sell.