11 November 2016: Nifty Elliott wave analysis: A big GAP down coming after recovery maybe big sign of trend reversal on medium term wave count.

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

11 November 2016: -

On 10 November 2016: FII Net Sold – INR 733.49 Crs:  DII Net Bought – INR – 639.19 Crs

8600 Nifty is my old quoted resistance. I have already said yesterday that higher levels are the resistance for this recovery. We started our activities on 8500 put options. We have added 8500 put yesterday in second half. Last hour dip was sufficient signal for a possible sell off.

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

Now, it’s the turn for technical. 8600 may remain possible top for the time begins although we may see frequent test of 8600 in months. Cross over may not be easy.

For today’s trading we are going to see a massive gap down. We have put options to enjoy but I am not suggesting fresh deal after gap down. I may prefer to exit my put option. Technical charts were giving a retest of 8400. Remember, a sharp cut day before yesterday has demolished many technical support. We may see reaction of that fall in the days to come.

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 – I have 8500 put from the levels below 65. If I get some good gain which I am expecting then I will make exit to close trades for this week. I am not very keen in shorting from lower levels. I advised caution at higher levels yesterday and today I am advising caution at lower levels. Do not get trap by being bearish at bottom. If you do not have short from yesterday then it is advisable not to trade today.

BANK NIFTY – Well, 20200 was more than what I was expecting. It is something which has performed better than any index. Technical charts are suggesting that it has entered in the zone of resistance and we can see a fall after gap down too. I am not active on this index yet neither have I wanted to be. Let us see how it takes support if it takes on some bottom.