13 June 2016: Nifty Elliott wave analysis: Weekly target can go as low as 7900. Do not buy dip anymore.

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

For 13 June 2016: -

On 10 June 2016: FII Net Bought – INR 201.32 Crs:  DII Net Sold – INR – 165.62 Crs

I had advised strong caution on Friday and it has closed below 8184 levels. It is very likely to see levels of 8100 levels. It looks like that my desired target will come by opening minutes itself. I need to re-evaluate my levels for weekly target. Down side will be prime direction for this week. Worse case target can go as low as 7900 levels.

For today’s trading session we can expect the market to open down to big down. I am expecting 8100 to be tested by very minutes of trades. If it broke 8100 levels then one can expect levels of 8000 very sooner this week itself. I do not see any levels safer for buy anymore. Technical charts are confirming for the pattern of short term top again.

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.

Please visit our ‘intraday updates’ to get further updates or to take good advantage join paid services.

Strategy for Nifty June future – I am maintaining short from 8250 levels. It looks like Nifty will thrash below 8130 by opening itself. If it has to take support then it will support at 8130-8120. If it fails then we can see this going below 8080-8060 anytime is quick time. Pain unwinding on long position is expected very sooner. Do not buy any dip or rise.

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.