19 July 2016: Nifty Elliott wave analysis: Decisive support for Nifty will be 8500>8480>8460!!! Will it fall more?

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

For 19 July 2016: -

On 18 July 2016: FII Net Bought – INR 599.09 Crs:  DII Net Sold – INR – 439.09 Crs

Well, we have again seen reaction from levels of 8600 and seen profit taking. This is what I talked about. I am still anticipating this correction to go on substantial note. The most critical support will be in the range of 8480-8460 zone. So far, one can say that market may try to wash weak bulls. On higher side market has already faced tremendous resistance at 8600 levels.

For today’s trading session I am expecting market to open higher near 8520 levels. We have just one logical resistance so far and that is just at 8600 levels. The time is on and we can see correction going deeper any moment. These 60-70 points cut cannot be named as correction. It is more like time based consolidation. Let us see what is coming. This may turn to be big opportunity to be on short side. All eyes are on GST and corporate earnings. Both will not be easily in favour of market.

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 8530 levels. After that it will get support at 8500 on dot levels. I like to trade only on dip. If it does not fall then I will avoid trading at these levels. I am expecting levels of 8480 levels. On higher side it will face resistance at 8560 to 8600 levels.

BANK NIFTY – This is expected reaction on levels above 19000 but this is not giving any good chance to correct. Remember, that as long as it is above 18700, I cannot suggest shorting. This is sectorial index and may perform better than blue-chip index. On higher side it will face resistance at 19100 levels. I like to see if it can recover from lower support or will it break the support.