20 December 2016: Nifty Elliott wave analysis: Absence of momentum is suggesting that trades should be avoided.

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

20 December 2016: -

On 19 December 2016: FII Net Sold – 535.77 INR Crs:  DII Net Bought – INR – 556.36 Crs

Range bounce activity continues but Nifty came at 8100 levels. We are not dealing on index at all excepting Waiting for break down. Technical support will emerge at 8050 and I am betting on failure of 8050 which is my speculation. Big question is – Is market tradable today? My answer is unless it breaks the range do not trade.

For today’s trading I am expecting a flat opening. I do not have any idea if this can give any great trading range. Technical support looks at 8050 only but it is hard to say that if this can see 8050 immediately today. On higher side 8150 to 8170 will act as resistance. My simple advice is that one should not trade in this kind of market. We are not dealing at all from past four days.

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 – SGX Nifty is giving hint for dull opening again and global market has done nothing. Technical support will be at 8100. I do not see the possibility of momentum generating in any direction although I believe that if momentum comes then it will be on down side. Let it generate momentum to generate first.

BANK NIFTY – My study remains same and my key point is 18300. I cannot trade long unless it takes out 18700 which is not going to be easy. Lower side support is at 18300 and we are close to these levels but can it give this downside easily. Let us see but I am biased towards bears to be bearish. I have yet to take bearish trade on this.