18 March 2016: Nifty Elliott wave analysis: Will it cross 7600 or will it die before 7600? Today we will get answer.

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

For 18 March 2016: -

On 17 March 2015: FII Net Bought – INR 744.49:  DII Net Sold – INR – 168.38

We saw intraday dip of 100 points from higher levels leaving bulls stunned in last minutes of trades. I must that this may have happened due to resistance of 100 DMA. I was expecting this. I am not too negative but I still expect price correction with consolidation. As long as 7400 holds on Nifty spot, short term direction will remains up.

For today’s trading session, Market may open higher backed by rise in US market. Shall we buy? My answer is no. 7470 may act as good trading support while 7600-7630 is a key resistance. Trading opportunity will be on weaker side for short. Wait for intraday signal of weakness. Expect nervousness from some levels. I feel that market has done with expectation of rate cut.

A reader has suggested deleting the paragraph given below. I must say that these are long term charting view with warning sign and hence it deserve to be part of everyday article.

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 March future – We may expect opening around 7530-7540. Unless it goes above 7600, I do not think that bulls can play it brave way. If it give up early gain then we may have good chance of slide but only if short signal emerges. Let us see.

S&P 500 (USA) – It took out 2030 resistance we saw a very healthy gain on Wall Street. It has a chance of hitting 2075 levels. Please take a note that 2045 is a mild resistance area based on charting. It had a multiple time support at 2045 when it was higher few months back. Now, that support may act as resistance but so far direction looks up.