27 January 2017: Nifty Elliott wave analysis: Nifty is up till budget and next technical target can be 8740. Too up to handle.

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

27 January 2017: -

On 25 January 2017: FII Net Bought – 1378.81 INR Crs:  DII Net Bought – INR – 383.03 Crs

We are inching close to budget day and market is building its expectation. It is moving forward with great momentum and breaking all possible resistances. Should we change the view which I build up in past year based on Elliott wave chart? I can say that this kind of phase of euphoric optimism may not able to change the view.

I know that this market can move on higher side but budget day will definitely be a shocker. In true sense market has already overdone. Although I am expecting that it can hit 8740 in this process.

For today’s trading also I am expecting another gap up opening. Technical resistances are too far to deal hence it may be another full day up move. It has bright possibility of hitting 8740 before budget. I am not participating in index rise this time as fall will not come with warning sign. On do not need technical support but you can expect a firm support at 8550 kind of levels.   

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 February future – I have projected for 8600+ levels. Well, it is now looking for a move above 8740. It can be a gap opening. Back to back gap up and up does not allow us to trade with any good comfort. One has to gather good courage to trade long. Shorting will not be any option as of now.

BANK NIFTY February future – If market has to move forward then we can expect targets like 20000 on February month future. Technical support is expected to be on 19300. As long as it holds 19300 targets of 20000 will remain open. There is no scope of shorting as of now, does not matter what kind of signal comes in intraday session.