10 August 2016: Nifty Elliott wave analysis: Near to 8750 resistance levels, market may not be safe for bulls. PANIC if breaks 8600!!!

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

For 10 August 2016: -

On 09 August 2016: FII Net Bought – INR 144.15 Crs:  DII Net Sold – INR – 610.15 Crs

Well, FIIs flow is slowing down and we are almost on resistance levels. Market is on crucial wave based resistance and this may be the time to consolidation with a down move. If I am right and market breaks 8600 then it may turn to be medium term top. I used to say that most top used to come near to policy day and it may be one such. So far, it is not so weak but weak enough to hold my short.

For today’s trading session I am expecting market to open on positive note to fate note. Keep your eye on 8600 levels which looks too far. If it can break 8600 then we can expect market to go lower and move lower. On higher side 8750+ levels may be tougher to cross. Well, what about the possibility of 9000 which I talked earlier? I am accepting that possibility is fading now. Remember, I was bullish from 8000 levels onwards. It’s too big rally with ease.

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 am maintaining short from Monday’s higher levels. We saw the dip yesterday but recovered in last hours of trade. I still believe that 8760-8765 will act as resistance for today’s trade. Market may consolidate but it may not go higher easily from current levels. Market deserves a short attempt but with caution. If it can move above 8765 then I will come off from my short deals. Confident sell will come below 8630 levels which is too far.  

BANK NIFTY – I do not have any take on it. It is on resistance and I do not think that it can show strength unless it go above 19200. Bank Nifty is my concern and it remains my concern. It has failed to deliver. This may be the reason that I am shy to hold my long. If market goes weaker then we can expect a decisive down anytime sooner. Technically, if it fails at 19200 levels then do not attempt from long from higher levels. Before RBI policy 19200 may be crucial and critical.