01 December 2016: Nifty Elliott wave analysis: Recovery may have more steam left for recovery. Can hit it 8300? May be yes.

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

01 December 2016: -

On 30 November 2016: FII Net Sold – INR 434.42 Crs:  DII Net Bought – INR – 534.20 Crs

I was not prepared to trade long but when it crosses above 8200 then I also jumped to trade index on long side. Current pattern and momentum is suggesting that I was not right my call on resistance. It has more stream than what I was anticipated. If this momentum continues then we may have chance to see 8300 levels.

For today’s trading I am expecting a flat but a strongly optimistic start. Somehow I cannot feel that we should jump more on long side. I have sufficient warning sign of Elliott wave count. Extension is very much possible for this rise. It can extend as much as 8300 levels. Well, if I see the possibilities of 8300 then also we have room to trade long for good 70-80 points more.

This remains part of my article. We may be under bear market till 31^st March 2017 and what I am talking is a pullback of bear market on medium term wave count. 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 December future – I traded long yesterday but my word of caution is still alive. There must be something which is pulling market. At least there is no short signal. Let us see where we can expect a halt. Technically, 8340-8360 is reachable. 8200 may be a support that will not break so easily. I still say, top is near.   

BANK NIFTY – My views remains same for BANK NIFTY we are almost on 18700 on Nifty. I can repeat that resistance is at 18700 only we are too far from that level. Hence, it is time to just watch. I am not in favour of taking trades at this levels which is not giving me certain buy or sell yet. We may not see much action in coming few days. Do not touch this index to trade. If there is a trade then it can be just long side from lower levels. Big question is what can be that lower levels.