03 November 2016: Nifty Elliott wave analysis: It is hitting 8500 levels. Now it is on make or break levels. Do not short without bounce.

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

03 November 2016: -

On 02 November 2016: FII Net Sold – INR 667.37 Crs:  DII Net Bought – INR – 407.27 Crs

Well, finally it came near to 8500 as low came as 8504. Technical charts were already suggesting this move from past two weeks and I gave enough warning from long position. Now, we are on a day were it is going to give “Make or Break” move.

It is likely to see opening around 8500 levels. Rest depends on development afterward. If it breaks 8500 on decisive basis then we can expect some panic move. I have a strong warning that Nifty can hit levels of 8200 to 8000 sooner or later.

For today’s trading session I am expecting market to open flat to downside. If this can breaks the levels of 8500 then I strongly suggest avoid any kind of long trade. It may prove to be falling knife. Well, my anticipation is that it should not break 8500 so easily. Who knows one more bounce left in this market.  

Read this long term analysis again.

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 November future – I do not have any trade now. I booked my short at 8560 which I added at 8670. Then I traded long from 8540 to book at 8565 levels. Afterward I am on side line. I have to take fresh call on trade. I am expecting support at 8500-8520 levels. Can it revive? This is a big question. Let us see. Technical charts are still bearish without any sign of recovery. It is going to be fight between hope and technical.

BANK NIFTY – It came at 19200 levels but it has not done much after opening and confirming that it is not going to give up so easily. Technical charts are suggesting for a down move but there will be lot of resilience. I do not prefer shorting from current levels without any bounce. I am expecting a bounce but there is no signal for recovery yet.