Wednesday, 16 November 2016

16 November 2016: Nifty Elliott wave analysis: I do not recommend short at lows due to gap down formation. Now gap up is coming.

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

16 November 2016: -
On 15 November 2016: FII Net Sold – INR 2353.82 Crs:  DII Net Bought – INR – 104.83 Crs
Well, it is little overdone due to multiple gap down formation. I must say that this market will fall more and more but not without bounce. People asked me many times how can I say that long term trend has chances. Just witnessed that nifty failed @ 8900 and came at 8000-8100. No matter what are the reasons in Indian but it has done. On other side, no single global market went down like this.
This is how chances trend and this is what we have forecasted. I am issuing a fresh signs of “WARNING” for investment. Indian market will be under threat till 31st March 2017. I am not saying that I will not trade long in between this period but I am saying that overall trend will be down. You are going to witness what is happening once in a decade.
For today’s trading we are going to see gap up opening to compensate gap down. Well, you cannot time your trade in this kind of environment. What one need is to limit the trade and try to play safe unless one get strong signal. I took some small call options yesterday but that did not work. Unfortunately those will open with a strong up tick. It does not matter if I miss opportunity. I do not want to burn money in uncertainty.  
Someone asked me if global market is Up how can Indian market be down? Well, that’s the way and that’s what Elliott wave has convinced 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 – I have no trade although I was on right track yesterday. Technical will not have many answers if we get wild gap formation. I will take fresh decision on it. I feel that technical support will emerge at 8180-8160 levels. If I have a choice then my choice will be buy in dip. Although I am repeating that bounce will not be impressive.

BANK NIFTY – I stick on my works. 19000 should not take out so easily. Now it can open around 19200 as per my expectation and that something which can be proven disaster for overnight long. Hope you are not. Technical set is suggesting support around 19000 for a bounce. Well, I can say that a bounce may be just one bounce. I am not denying the possibility of another ugly picture of technical set up.    

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