10 October 2016: Nifty Elliott wave analysis: HAPPY DASERA – Make holiday- Do not trade

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

For 10 October 2016: -

On 07 October 2016: FII Net Bought – INR 56.25 Crs:  DII Net Bought – INR – 726.80 Crs

Nifty hang near 8700 and this makes market dull. I must say that as market is on long holiday, it may not move much. We have Holiday today and tomorrow also hence participation will be less in the market. I strongly suggest that one should not trade in this kind of market.

Elliott wave signal will be as it is. It will react only after when market reopens on Thursday. My prime call is that market will fall once market comes in full trade mode.

ELLIOTT wave based target may be in the range of 8200-8000 levels. This will be applicable sooner.

For today’s trading session I am expecting market to open on flat note. After that market will remains in range. My expected range for market will be 30-40 points only. Technical support is at 8650-8670 and on higher side it will face resistance at 8740. Well, it is just a technical view although market will not move even that much.

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 – I am off to my short trades and now I am sitting silent. Technical charts may support for trade but I am not trading due to holidays hitting market. I am expecting market to remain in a range. Support to come 8700 and resistance will come at 8770. I may not opt to trade.

BANK NIFTY – As said for Nifty, Bank Nifty will also remain in a range. Technical support will be at 19200. Whatever bounce is coming due to choppy session will not sustain for long time. Elliott wave based target may go very lower from present levels. It is advisable to be very cautious if one is trading long. Time based odd bounce may be odd buy.