31 August 2016: Nifty Elliott wave analysis: Its WoW rise with all possibility of hitting 8800 levels. Further rise will come with great risk.

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

For 31 August 2016: -

On 30 August 2016: FII Net Bought – INR 390.63 Crs:  DII Net Bought – INR – 485.14 Crs

I was in wait mode for adding short in spite of all weakness. Here comes shocker for bears. Breakout of narrow triangle formation goes on higher side. I am saved but I missed this rise in the name of caution. Well, I will not take out the word of caution. As far as Nifty is above 8700, there is no question of any weakness. In fact, market can shock you at higher side but definitely not at lower supports as supports are too many in frequent intervals.

For today’s trading session I am expecting market to open on flat to negative note but there is no great chance of any weakness. I see higher chance of consolidation on these levels or some more rises. I have anticipated earlier as 8880 as August month target which seems to be in action.  I have quoted earlier also that support for Nifty to come at 8540. Let us see how it will shape up today.

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 September future – So, triangle has played its role again. When it was looking for dip it took U turned and washed all shorts. I am not short on Nifty yet and I may have a plan to give from all such odd trades. Market may have chance to move higher again. It may looks to hit 8840-8860 levels too. I am strong on my call that rise may be very risky from current levels. If market can shock bears then it can shock bulls too.

BANK NIFTY – It has saved 19200 and moved towards 19500 levels. Technically above 19600 we can expect a move towards 20000 levels. Will it happen in reality or will it miss by smaller margin. Technically, call for rise is still applicable although this index is not convincing me to much extent. Those who can afford risk can trade long on this index.