13 July 2016: Nifty Elliott wave analysis: 13th Day reversal may come today from higher levels. Caution advised for all long trades.

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

For 13 July 2016: -

On 12 July 2016: FII Net Bought – INR 1155.80 Crs:  DII Net Sold – INR – 610.57 Crs

We saw almost 600 points on Nifty at one go from 7930 to 8530 almost. This rally is 12 days old and today is 13^th trading session. Now, we may have a condition. If price correction has to come then it may come in a day or two before fresh wave of attempt. It is logical too. If nifty has to 9000 levels then a price correction will be healthy.

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 flat. Afterward it will face resistance at 8575 levels. I am expecting a price correction to begin either by today or from tomorrow. Remember, I am not saying that it is my compulsion to expect correction. This correction may not able to truncate the uptrend. It is just a price correction against sharp 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.

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Strategy for Nifty July future – Opening is expected around 8550 levels. Afterward resistance will emerge at 8580-8590 levels. There may be meaning to add short from higher levels today with caution stop loss. Below 8480, we can expect correction intensifying. Are we going to get such correction where Nifty future can hit 8400? I expect and I hope for so.  

BANK NIFTY – 19000 will be reality sooner but one pullback is expected on Bank Nifty although it has gone up with good consolidation. I am expecting a good short term support to emerge at 18200-18100 levels. After that a strong rally can hit to give 19000 as reality. So far, stop trading long from 18700 levels ahead of a possible price correction.