15 July 2016: Nifty Elliott wave analysis: Will Nifty surpasses 8575-8600 marks without correction? If yes then a short covering rise can hit.

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

For 15 July 2016: -

On 14 July 2016: FII Net Bought – INR 869.84 Crs:  DII Net Sold – INR – 874.15 Crs

Nifty moved forward and coming near to 8575 levels. I am expecting a pause or a correction from levels nearer to 8575 but so far, we have no single trace of price correction so far. This suggests me that market will move towards 8600 at least. Suppose if it can sustain above 8600 then we may see possibility of short covering rise.

For today’s trading session I am expecting market to open higher near 8600 levels. I am definitely not going to be active anymore on long side unless I get some real strong buy signal. If weakness comes then we can see some good action on Friday. If not today then a price correction is coming very next week. Be cautious at higher levels.

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.

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 – Opening is expected around 8600 levels. After that it will get support at 8580 levels. I do not see much chance of trading on long side unless short covering rise hit. It is a known fact that most top used to come with short covering rise and no rise can be better than short covering rise. Let us what comes. I am not interested to be very active.

BANK NIFTY – It has moved above 18700 and hence it gave life to Nifty even. Above 18700 Banknifty has every chance of going near 19000 levels. For today’s trade Bank Nifty will get support at 18700 levels now. Let us see how will Bank Nifty will react at 19000 levels. I advise strong caution at these levels. Although price correction may not be big, but big enough to test patience.