04 January 2017: Nifty Elliott wave analysis: Market is not able to find many buyers above 8200 levels. Be cautious.

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

04 January 2017: -

On 03 January 2017: FII Net Sold – 500.49 INR Crs:  DII Net Bought – INR – 562.27 Crs

We can sense that market is struggling above 8200 and it is not able to find more buyers. I can say that if Indian market is showing any resilience then it is due to the fact that major global indices are running higher specially US market. Market got news that we will have Union budget within less a month now. So, market need to prepare itself for Budget too.

For today’s trading I am expecting a flat start as it is due to the impact of good rise in US market.  Technical resistance will emerge again at 8220-8230 levels. Technical support is in the range of 8150 to 8130 again. Well, same levels and I have same views. Some days US market will face resistance and retrace the rise and we will came to know about reality of Indian market.

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 January future – My study remains same. It is showing for a start at 8200 as of now. Well, in my view market will not able to sustain at higher side. It may give up its gain sooner or later. Technical resistance is at 8225-8240. In the down side it will have support at 8150. Can it break? If it breaks then we can expect a good fall. It does not matter if it happens today or tomorrow.

BANK NIFTY – This index is weaker than Nifty. If blue chip index has to see a fall then I can see a possibility of first fall on this index itself. Technical support is at 17900 and we can expect the test of 17900 sooner or may be by today itself. Below 17900 we can expect a panic or panic like movements. On higher side, it cannot be safer unless it go above 18300 levels.