20 January 2016: Nifty Elliott wave analysis: Today is 13^th day from the top of 7972 levels. A reversal must be very close for short term. Support – 7365-7335!!!

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

For 20 January 2016: -

On 19 January 2015: FII Net Sold – INR 857.70:  DII Net Bought – INR – 1386.83

Today is 13^th day from the top of 7972 levels. We saw a bounce yesterday but right now SGX Nifty is running in a gap down mode. It does not make too many sense but we cannot expect sense every time from stock market. We have two technical supports on Nifty. One is at 7365 and next is at 7335. It is hard to anything if market extend its fall.

For today’s trading session, we can say opening around 7365 support levels. After that we will see support at 7335 levels. There is no question of technical resistance as it is opening on a mode where it has to decide for support first.

Let me clear what weekly charts are saying. A full 1500 points of fall is possible from 7500 levels. I have no idea if it gives 100% result what it is showing on theory but the target lies near 6000. Sorry, if words hurts you but this is what I feel. I do not see Nifty going at 8000 anymore in easier way.

It looks like H&S pattern is taking its effect. Well, if H&S pattern goes on its true mode then 7200-7100 is the possibility. Meantime Nifty is over sold for short term and intraday chart. This says that market may ignore MACD positive divergence and sooner or later it will hit 7200-7100 levels. After that 6500 will be the figure which people will talk about.

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Strategy for Nifty January future – Nifty Future opening may go around 7360 and this is something which may be below yesterday’s low. Note that we saw a recovery yesterday. This will wash out yesterday’s gain. After that support will be only at 7330. I do not suggest any shorting after this kind of gap down.

S&P 500 (USA) – S&P closed near 1880 and future is still down. It is down in a critical way this morning. Is it saying market do not want to take support even now? Well, if this is the case then history is in making. Based on wave theory we have every reason to expect a technical bounce from or before 1860. I am still under doubt but strongly believe that it should come anytime now. Does not matter what futures are doing.