11 July 2016: Nifty Elliott wave analysis: Kick off to touch for 8500 will start on Monday morning. Just long as long as 8300 holds.

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

For 11 July 2016: -

On 08 July 2016: FII Net Bought – INR 330.62 Crs:  DII Net Sold – INR – 512.67 Crs

I am already emphasizing that Nifty has good potential to move towards 8500 and I feel that it will see a kick off start today. It has already maintained levels above 8300 in good extent. Longer it stays above 8300 we can see a move towards 8500 or higher. We have some call options on index to carry on.

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 positive to very strong positive. Remember I am expecting as big as 9000 very sooner. I am definitely encouraged by current move. If it can maintain gap up then we can expect a very strong rise. It is strongly suggested that traders should avoid any kind of shorting in search of any weakness. If weakness comes then I may able to give first hint. So far, there is nothing like that.

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 – gap up formation is something which is tougher to deal. We have some options as carry forward. Still, I can suggest that one can prefer to add long in any intraday dip. By closing minutes it can go on much higher notes. One cannot expect dip beyond 8380 in normal case. Let is see how big today’s rise can be.

BANK NIFTY – This is not participating the way I was expecting for but my view is a buy above 18100. 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.