02 September 2016: Nifty Elliott wave analysis: Once again same view, from a high of 8820 we can see a profit taking up to 8700!!!

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

For 02 September 2016: -

On 01 September 2016: FII Net Sold – INR 301.51 Crs:  DII Net Bought – INR – 308.16 Crs

I have quoted for resistance at 8820 and that works. Nifty has failed on higher end but this is just not enough to say that market gave sell signal on daily chart. Well, but hourly chart has given a sell. I can repeat what I have said yesterday that Nifty can see a profit taking and may come around 8740-8700. I still believe the same. Today is the last trading day of the week.

For today’s trading session I am expecting market to open on soft note. Nifty will face resistance at 8820 levels. In the down side I see the possibility of 8740-8700. It just suggests that market may see a drop of 1% from current levels. Take a note that higher levels are a trap for bulls. Do not prefer to go buy mode at higher levels.

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 – I suggested for a sell signal yesterday at 8835+ levels. It took a fall but those came in just last 40 minutes of trade which I suggested a sell signal in morning minutes. This market was so dull at top. You can expect this kind of moves again. Below 8780, we can see a fall towards 8750-8730. Friday fever may give a sell.

BANK NIFTY – I am looking for a pullback possibility. It can see a profit taking which can drag Bank Nifty towards 19500 levels. It came with a high above 19800 levels and this is what I was anticipating once it is above 19200. It took an attempt to move towards 20000 levels. This may play a hide and seek game near 20000 levels. Do not prefer to trade long at higher levels.