07 September 2016: Nifty Elliott wave analysis: Again, now Nifty can extend its possible target around 9000 levels.

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

For 07 September 2016: -

On 06 September 2016: FII Net Bought – INR 1438.72 Crs:  DII Net Sold – INR – 268.21 Crs

Uptrend sustained from past six trading sessions. We almost saw 400 points of rise from the low of 8543 levels. It gave us perfect sense that steam has left in the market for uptrend. It may try to challenge 9000 levels too and this may happen by today or tomorrow. In this kind of momentum we advise caution at higher levels for bulls but equally this is not the market o trade short. It is just going to burn unnecessarily.

For today’s trading session I am expecting market to open on strong traditionally. Afterward it may try to challenge 9000 levels before reacting. Please the read the last paragraph which is the part of my article from past many months. I have quoted for the possible point for the end of long term wave B, i.e. it can be at 9000. So, I am just avoiding this kind of odd few percentages of rises. I am not claiming yet for correction but I wave goes the way I had anticipated earlier then after making a top our index will go under a correction and the intensity can definitely shock you.

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 have no point to say that any correction can hit this week. Market can either be up or choppy. I am avoiding these levels to trade on higher side on index especially while stocks are attracting me more. It looks like to hit 9000 levels or may be higher above this.   

BANK NIFTY – It has surpassed 20000 marks and came near to 20500 kind of levels. Technically it may go near to levels of 20800 levels. It is banking index which is giving great push to blue chip index in past few trading days. There is no sign of topping yet. The momentum continues we can see levels of 21000 also very easily.