25 July 2016: Nifty Elliott wave analysis: Nifty is still looking tired but some decisive direction can emerge anytime now.

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

For 25 July 2016: -

On 22 July 2016: FII Net Bought – INR 437.78 Crs:  DII Net Sold – INR – 365.67 Crs

We spend full 10 days in the same range and market has entered in to expiry week. Market is still on consolidating mode. I am not very keen in trading as market is just in range and almost turned unpredictable for next direction. I still see a possibility of correct but it looks like market was looking for time correction only. In that case we may see fresh up move to begin sooner. I like to wait before adding fresh trades.

For today’s trading session I am expecting market to open on flat note. Nifty is still facing hurdle at higher levels near 8600 levels. Today will no different day. Hopes are on side line but strong bulls are not entering in market. Market may prefer to wait for decisive move. Let us see if it can break the range of 8600 to 8470. Whichever side it breaks, we can get a great move in that direction by this week. It can be 200 point up or 200 points down.

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 – Higher resistances are still applicable and we are now about to see the possible price correction. Let us see if we get or not. At the break of 8490 it will slide towards 8410-8400 levels. Strong caution is advised at higher levels. Will it able to surpass higher resistance levels as it is far up from support.

BANK NIFTY – It has broken 18700 and showing sign of weakness. As long as it is staying below 18700 we cannot expect strength on Nifty. The next and most crucial support will be at 18400 levels. This is going to be decider now. Technical charts are suggesting that if it breaks 18400 then profit taking can be bigger than expected but I do not see any such great possibility yet. I may have better opportunity on Nifty.