30 September 2016: Nifty Elliott wave analysis: Now 8500 levels will act as strongest support. I will be stronger buyer from low.

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

For 30 September 2016: -

On 28 September 2016: FII Net Bought – INR 3413.37 Crs:  DII Net Bought – INR – 1630.88 Crs

Well, are you scared about the future of Indian market? I must say that fall has nothing to do with India’s surgical strike on PoK. It may sound odd to you. Have a look on above figures which are showing FII’s confidence. If fall is comes then also it is a part of stock market function. I am more than confident on India’s economy now. Mentioned action by government of India is good step for Indian economy. Terrorism and continuous victim of terrorism causes more bad factors to economy. Be a step ahead and live with tactic of “Offensive Defence”. This will defend economy factors.

My views may not be accepted by many but this is my view and I live with it. Your attitude towards your action always matters.

For today’s trading session I am expecting market to open on soft note but it will not be panic kind of environment. Well, 101%, I was able to see through Elliott wave pattern that something is coming. Hence I bought a put yesterday for expiry day. How many times I have quoted for 8600 as expiry target? Although, I was not knowing the cause of fall. My one liner analysis is – 8500 is your desired support. I may be aggressive buyer in dip.

One more thing, nothing is going to happen at Indo-Pak boarder in the year 2016. Do not expect anything happening sooner so this was last news and come back to work.

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 October future – One may expect below 8600, it may come to 8520 also in panic but there is nothing to panic. I may opt trading long from lower levels. There is no question of shorting at all. Yesterday we picked 8800 put @ 30 and booked above 200. A jackpot trade. What will I do today and how will I act. There is no certainty but most probably I will be long from lower levels.  

BANK NIFTY – Well, if you want to see strength then take a note that first sign of strength will come on Bank Nifty. My desired support is at 18800-18600. This may be my desired buy range. I am expecting the break of 18500 anytime sooner next week. I am not blind to deal either but I am optimistic for a rock solid rebound from lower levels.