10 November 2016: Nifty Elliott wave analysis: So it’s done for the shock and 8000 has saved. Can market come back to normalcy?

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

10 November 2016: -

On 09 November 2016: FII Net Sold – INR 2095.00 Crs:  DII Net Bought – INR – 1116.31 Crs

Fine, it says that market goes in shock and came out of shock in just one day. We picked a Nifty call option to hunt this opportunity. It’s a new day and a new world now. Donald Trump is going to be president of USA. To be honest, I have my personal opinion that world will live on the edge of uncertainty. The new US president is unpredictable. He can do what no one can think. Even he cannot.  

Was it not a surprise like BREXIT? 101% yes. We saved ourselves and our subscribers from the state of shock.

For today’s trading session I am keeping my view open for trade. Yesterday I was bullish for intraday. Day before yesterday, I was bullish for intraday. I was mostly bullish for intraday but I was never sure for overnight development. Shall I be bullish today?

No, maybe not. From the charting point of view I can say that it has done the impact of H&S pattern and now, it is ready to test n-line again. Another thing, some traders want tome to disclose Elliott wave count. Well, once again I am repeating that it starts unnecessary debate and affects my trading and hence I do not. It does not matter what I say, bullish or bearish, I will disappoint half of the crowd. Many times, for the sake of learning, people try to impose their views on me.

I am just writing my view and I am least interested in learning or sharing so please do not make sure request.

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 – For yesterday, I said that market may recover from 8100-8050 and it took “U” turn. This suggests me for a high flier action on Nifty and hence I picked 8400 call. Well, I have exited form this call at higher levels. I have no forward position on Nifty. I will take fresh deal from here after. It may be on up side or it may be on down side. I am looking for rise in first half which will come as extension of recovery.

BANK NIFTY – What a bounce yesterday and it gave first signal of recovery. Technical charts are suggesting that we can expect levels of 19800-20000 in the process of recovery. I still maintain a buy call for first half of the day. Second half will depend on its reaction at higher levels. It may be down. 101% be cautious at higher levels.