21 January 2016: Nifty Elliott wave analysis: Will Nifty respect 13^th day bottom of 7241? Yes it can!!!

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

For 21 January 2016: -

On 20 January 2015: FII Net Sold – INR 1324.69:  DII Net Bought – INR – 1383.14

It looks like it hit a short term bottom on 13^th day itself. We got recovery in very last 30 minutes trade. Before that it was too painful for bulls to see market. Question is still alive. Will this recovery sustain? I was definitely not confident yesterday. Now looking in to SGX Nifty, it seems that Nifty is almost 2% higher from yesterday’s low.

For today’s trading session, we can say opening around 7365 levels. This is definitely encouraging but I warn from the possibility of this opening get sold at high. One intraday sell off is bound to come and that will decide if we can say yesterday’s low as bottom or not. Wait for opening. 7240 was crucial and critical.

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 we can say that it is good for bulls. Technically if it can extend rise above 7400 then it can good. I will prefer to buy one intraday dip. I do not know at which levels.

S&P 500 (USA) – Before getting a bounce, S&P goes to hit 1812. Well, closing for Wall Street was encouraging but it came too late. This recovery should not end in one or two days. I am expecting the extension of this recovery towards 1915 to 1945 levels. It has still a long way to go. Meaningful support is only at 1812 to 1800 levels.