01 August 2016: Nifty Elliott wave analysis: High possibility for 8900 for Nifty for this week of trades.

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

For 01 August 2016: -

On 29 July 2016: FII Net Sold – INR 14.02 Crs:  DII Net Bought – INR – 148.34 Crs

After long time, we are in the situation where waiting is turning irritating. Market is not breaking on higher side. I must say that 8680-8700 resistance levels is acting as real tougher resistance. I must add that market is still powerful enough to move forward to hit as high as 8900-9000 levels. There is no evidence of getting any kind of tradable short signal yet.

My anticipation is that we may see levels of 8900 at least by this week before any final profit taking. In that way one should just think to buy in every possible dip.

For today’s trading session I am expecting market to open on positive note but it can get momentum any time now. As long as Nifty is above 8600 we cannot think of any kind of profit taking in anyway. We may get multiple supports in the downside. On higher side I am anticipating 8900 by this week.

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 August future – I will prefer to trade long on any dip now for this week. As long as Nifty August future is above 8660 levels, Nifty future will direct towards higher levels only. We are on 5^th wave and this can be furiously up with great extension. Do not short in normal circumstances on top anticipation. Just buy every possible dip for positional long.

BANK NIFTY – Bank Nifty is still my concern. This turned as laggard compared to blue chip index. This is my only worry point but I am still optimistic. Good decisive cross over point is 19200. It has slipped again before 19200 and my worry continues. Technical charts are saying to avoid this index as long as it is below 19200. From near to this levels, this index is not safe for bulls. Once it goes above 19200 we can think for the rally towards 20000.