06 September 2016: Nifty Elliott wave analysis: Nifty is likely to knock 8880 levels. Strong caution is advised.
You must read previous articles and watch the given chart carefully to
understand this article completely.
For 06 September 2016: -
On 02 September 2016: FII Net Bought – INR 231.19 Crs: DII Net Bought – INR – 134.88 Crs
Nifty has closing at 8800+ levels in the last trading session. I have
anticipated for two figures to be claimed as top, one is at 8820 and another
can be 8880. SGX Nifty is giving a hint that we may visit levels of 8880 too. So
as far as present pattern is concerned, nifty is on strong up trend. This was
result of a consolidation pattern which has saved support of 8500.
For today’s trading session I am expecting market to open on strong to
very strong note with all expectation of great outcome. Market will see a top
formation from extreme of optimism. I am very sure that market will through a
shocker to bulls this week. I strongly advise strong caution for overnight long
position. I am not interested in participating in long trend. I will add safer
instrument on short side via adding put option. Market may punish me to a
little before rewarding.
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 – It looks like Nifty Future will open above 8900 levels. Well, then
I have no point to suggest to trade on any further long. I will just maintain distance
from market as of past few days. If I see weakness then only I can come for
trade.
BANK NIFTY – Slowly it is
on the knocking door at 20000 levels. Today may be the day that we will see
20000 on bank Nifty but from here euphoria may end any time and may be at any
levels. Technically, we may not have many things left on the table after 20000
levels. If it does not may a top here in few days then we may see brutal
extension of this rally. In that case market will go extremely bullish with
many unexpected target. I have no trade on this index.
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