08 July 2016: Nifty Elliott wave analysis: No change in analysis. Rise is still expected after the end of this consolidation. Target – 8500 minimum.

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

For 08 July 2016: -

On 07 July 2016: FII Net Sold – INR 299.51 Crs:  DII Net Sold – INR – 159.98 Crs

I am not surprised by yesterday’s choppiness at all. It was expected and market is consolidating before moving up further. This uptrend will remain intact as long as Nifty is standing above 8280-8250 support zone. This is up and well up. My expected move it towards 8500-8575 levels. This move will come by today or tomorrow.

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 positive 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. On higher side anything above 8400 will trigger good move. Momentum once come will continue for many days more. I have nothing much to change in my previous analysis.

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 July future – Study remains same. It goes on consolidation in last trading session. Technical charts are suggesting that 8300 will act as good support and if this comes then it will be an opportunity to add long. Well, will these levels come? I do not think so. Anything above 8424 will trigger a short covering rally. Market is expected to open at 8350 levels. If I find intraday strength then I will prefer to add long. Take a note that the day it gives closing above 8400, we will get short covering rally on very next day. Prepare for this.

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.