16 August 2016: Nifty Elliott wave analysis: Buying is suggested in dip for 8750-8800 as this week target.

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

For 16 August 2016: -

On 12 August 2016: FII Net Bought – INR 1203.71 Crs:  DII Net Sold – INR – 392.47 Crs

Current trading pattern favours bulls so much right now. It has saved 8550 and turned for the next bullish move towards 8900 as possible target. I have traded one long last week and I have planned to buy for this week too. I want some intraday pullback to add my long and I feel that we may get.

For today’s trading session I am expecting market to open on positive note. 8550 will turn out to be a good support for the week and 8630 will be good intraday support. On higher side it can hit 8750 levels by this week. I still suggest buying the dip on support and buying at the time of strength. Buying opportunity may come today or it may come tomorrow. Wait for right time to add buy. Do not opt shorting.

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 do not have any position now. Technical charts are still strong on long side. I will prefer to buy on support on intraday dip. Technical support will emerge at 8650 and then at 8610. I have planned to buy and hold for 2-3 days to get a good target. I will not buy on rise. There is no question on shorting in normal circumstances.  

BANK NIFTY – I still repeat, unless it go above 19200 I prefer to avoid. My study remains same. It is saving support at 18400 by long way although recovery form bottom was not as good as nifty. Still, support is working so far. Technical charts are saying that if t saving 18400 then do not short. On higher side 18700 is a decisive level for bulls. If it breaks the resistance on higher side then we can expect another bullish attempt but that also may not be impressive. In all, this index is still not my favourite for trading. I focused on Nifty only.