11 August 2016: Nifty Elliott wave analysis: It has broken 8600 and panic can start any moment now. Below 8550, it can hit 8500!!!

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

For 11 August 2016: -

On 10 August 2016: FII Net Bought – INR 412.56 Crs:  DII Net Bought – INR – 747.27 Crs

I have already warned for this fall. Nifty has broken below 8600 and now it is on the break of 8550 too. This may be first sign of profit taking. Option statistic is suggesting that fall can extent on follow. Today is the follow up day. If bears can able to give follow up of this fall then I am expecting a test towards 8500 levels sooner. It may come even by today. So far, global market is strong and saving Indian market.

For today’s trading session I am expecting market to open on flat note. If Nifty can break 8550 then we can expect market to extend its profit taking mode towards 8500 levels. On higher side 8600 may act as stiff resistance on rise. I am sensing that it has done medium term top. It requires more confirmation. If I am right then expiry can go around 8400-8300. Market looks tried for fresh rise.

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.

Strategy for Nifty August future – I am maintaining short from Monday’s higher levels of 8745 and since then I am sitting silent. I can just guide what shall be done for the day. My study is suggesting me that 8640 may difficult to cross now. If this happens then we can hope for a move towards 8530 sooner. It looks like below 8570, we can get those levels. In my view market has already entered in a mode to exhibit panic.

BANK NIFTY – This is also on expected way. Technically, failure of 19200 can cause 18400 and we are almost 250 points away form 18400. If market goes weaker again then we can expect the test of such levels sooner. It may hit 18400 by this week itself. It means it can come either by today or by tomorrow. Do not short from lower levels. If one wants then shorting can be done from higher levels only.