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 31st
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.
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