12 September 2016: Nifty Elliott wave analysis: My “MOST WARNED GAP DOWN FALL” is about to come with Monday’s opening. Do not short fresh without bounce.

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

For 12 September 2016: -

On 09 September 2016: FII Net Sold – INR 315.24 Crs:  DII Net Sold – INR – 328.26 Crs

Last paragraph of my article remains the part of my study from past many months. I was bullish from levels of 8000 and remain bullish till 8750 then I suggested all that market may take time but will slip. 9000 may be the levels where we will face resistance and we saw exactly same moves. In the Friday’ trading session we had added shorts on Nifty Future finally after long waiting. We have added short on stocks future from Thursday itself. We have added 8500 put on Nifty. I like to see the price today.

For today’s trading session I am not expecting anything. Its all knows after seeing bloodbath in US market. If you do not have shorts then just log off the terminal. It is strongly advisable not to short in gap down. I suggest adding short on some strong bounce. This may be of 100 points on Nifty from low of the day.

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 – My effective short deal on Nifty future is from 8935 levels and I am about to get 200 points over night. My last deal on nifty future was on 24 August. I waiting so long and act on time. I may prefer to book my profit for once but I will surely plan to short on bounce. Let us see where can I book and where can I add short again.       

BANK NIFTY – It has is definitely going to break 20200 in gap down and I am expecting 19800-19600. I do not suggest shorting in gap down. If bounce comes around 20000 then it will be a short. I am strongly suggesting that market may head for intraday recovery after such brutal gap down.