05 July 2016: Nifty Elliott wave analysis: Every correction is opportunity to buy. Expect as big as 9000 levels by Next month. Mammoth rally ahead.

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

For 05 July 2016: -

On 04 July 2016: FII Net Bought – INR 182.28 Crs:  DII Net Bought – INR – 377.45 Crs

Market goes under consolidation. This gave us a good sense of some price correction which is a need. I do not think that any price correction can take out 8300 to 8250 support so easily. I am waiting for this price action. I am strongly optimistic for a bigger price action on higher side.

After looking to this structure and then way market has refused to break below 8000 even in panic we can say that market is preparing something big. This big think can be as big as 9000-9100 levels of Nifty. I see such great possibility hence bears must be cautious.

For today’s trading session I am expecting market to open flat to negative and if any price correction comes then also it will be opportunity to trade long only. Technical support stands at 8280-8250 levels. This price action is suggesting that market has multiple supports at lower levels. Good consolidation will give good price rise.

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.

To take good advantage join paid services.

Strategy for Nifty July future – It open firm and it remains up. Technical charts are suggesting for extension of rise. Well, one price correction is due but there is no sign of such correction coming. Even if it come for 100 points then also trend will remains up. Biggest the price correction higher will be magnitude of rise. Opening it expected to be flat but trend is expected to remains strong. I strongly suggest to buy in dip.

BANK NIFTY – This is not participating the way I was expecting for. This is my only worry point for Indian market. I believe that above 18100 we may able to see as big as 19000 on Bank nifty. I can say that it is a good breakout after a proper consolidation which does not show much confusion. This reflects that bank Nifty can lead the upcoming rally. The possibility of big rally remains alive as long as it holds 17400 levels. Use dip to buy. I will be happy to see some price correction to add long.