Wednesday, 3 August 2016

03 August 2016: Nifty Elliott wave analysis: Nifty has decisive support in the range of 8580-8550. Wave based resistance is @ 8700 !!!

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

For 03 August 2016: -
On 02 August 2016: FII Net Bought – INR 536.27 Crs:  DII Net Sold – INR – 383.23 Crs
Elliott wave chart is showing for resistance at higher levels. The levels of 8700 are turning to be decisive. Technical charts are also justifying for resistance but this is too early to say that market will correct. I expect that it can just consolidate before giving next trigger for trade. Bank Nifty was my concern and it is still my concern.
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. As long it is above 8550 kind of levels bulls are safer.
For today’s trading session I am expecting market to open on negative note and then it may go here and there only. if possible avoid trading unless it give some strong signal to trade. You must keep an eye on support levels of 8580-8550. I can hope that it will not break.
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 have exited my long at 8700 levels which I bought at lower levels. I took a safer exit and then moved out of market as it was giving sign of weakness for trading. Well, it will open down today and hence I have no point to short. Well, I am not sure but I may opt to add long at lower levels with caution.

BANK NIFTY – I am keeping my study same for Bank Nifty. I was concerned for Bank Nifty and we saw a dip. I was worried about this kind of situation where Nifty try to sustain but Bank Nifty gave a dent. Technically 18700 is a support but I am advising strong caution in this zone. If this breaks 18700 on decisive note then 18400 will be next big support to talk about.  

No comments:

Post a Comment