19 January 2017: Nifty Elliott wave analysis: Can it able to hold 8400 levels? A correction deserves but denying so far.

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

19 January 2017: -

On 17 January 2017: FII Net Bought – 142.20 INR Crs:  DII Net Sold – INR – 607.23 Crs

I do not find any great reason to change my study. It is a pausing market but not giving up. I do not have technical reasons to justify this kind of market moves. Rather I can say that it has happened many times in past years. I am almost sure that market has denied fall due to budget coming closer. I am very sure that this rise will end on extreme brutal note. Who knows yearly high will once again comes in January February month.

For today’s trading I am expecting resistance in the zone of 8440+levels once again. I am saying that it is going to face hurdle on each rise if comes. Ideally, it deserves a price correction. As it is in time correction mode so I cannot specify with confidence that correction will come. Once again as long as it is above 8360 we cannot think for a meaningful correction.

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 has slipped from higher levels but not down much as I was expecting. Technical support is at 8370-8360 levels. One must wait for this down break side to trade short.  If it does not then it can just move dull in this range. Let us see, if can give decisive move anytime now.

BANK NIFTY January future – I am keeping my analysis same for Bank Nifty. It went above 19000 with ease. Technical resistance will emerge at 19180-19200. There is no meaningful correction from past 1000 points of rise. Will it correct today? Let us see. It is not very easy to expect correction in the market which runs on optimism.