Monday, 2 January 2017

02 January 2017: Nifty Elliott wave analysis: Welcome to 2017!!! Hoping to start year on bullish note but caution needed at higher levels.

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

02 January 2017: -
On 30 December 2016: FII Net Sold – 585.64 INR Crs:  DII Net Bought – INR – 725.26 Crs
Welcome to the New Year and wishing all of you a very happy New Year.
Most global market has closed today. This may be prime reason that I am not expecting market to move in broader range. Technical charts may be looking for up and I am expecting that market will remain up but trading range may not be broad. Charts are suggesting that we can expect resistance above 8250 levels. Big question is that can we expect 8250. Well, if it has to test 8250 then it should deliver today only. In the absence of follow up buying market will fall again. Note that we are going to be in earning season next week.
For today’s trading I am expecting that market will open on dull note. Technical support is at 8150 and on higher side we need a kick start above 8200 levels. If this happens then I can expect a fresh up wave today. I am issue a sign of warning. It has high chance to make a weekly today or may be at 8250 – 8280 kind of levels. In the lower side if it breaks 8150 then we have no point to be on long side.
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 January future – Once again I do not want to be bearish. Technical support will emerge at 8150 levels. As long as it above 8150 we have chance to be on higher side. Technical resistance is at 8210. Can it able to surpass above 8120? If this happens then we can expect a fresh rise of 60-80 points. Let us see what comes. Higher chance for a up trade or choppy trade with upside. Do not trade if range is limited.  

BANK NIFTY – I am still saying at 18300 is a decisive resistance. On higher side it will have potential to hit 18300. Let us see if this can hit this level or not. In the lower side support can emerge only at 18000 levels. Can we expect a good move? If it has to come then it should come for rise only although this rise will not sustain for taking positional long. 

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