03 February 2017: Nifty Elliott wave analysis: As long it is respecting 8660 we can expect extension of rise. Will it fail at some point?

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

03 February 2017: -

On 02 February 2017: FII Net Bought – 108.59 INR Crs:  DII Net Sold – INR – 110.89 Crs

Support of 8660 is still maintaining and it has closed almost on dot around 8740. It has almost done 76.4% retrenchment. Can it extend more? Yes, as long as it holds above 8660 we can expect extension only. Technical charts are giving every reason for a pause to fall but there is no single confirmation. Moreover, we are in February month.

For today’s trading I am expecting Nifty to cool off little in first half. It will again take support before 8660 and it may take one more attempt to move higher in second half to challenge a close above 8740. It is going to be interesting. If it starts recovering in second half then it will have opportunity to trade long. If it breaks 8660 then we can have opportunity to trade short.

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 – A good budget saved the market but it is almost silent at higher levels and market to decide its next course of action. Technical support is at 8680-8660. As long as it holds these levels it will prefer to move higher levels. At some point it will violate one support. Well, so far there is no single violation.  

BANK NIFTY February future – No great change in levels and analysis for Bank Nifty. 20000 has done and trend based momentum target may be looking towards 20300-205000 levels. Shall I expect more momentum? Let me tell you that in a euphoric rise top used to come at the time when least people expect about it. Today may be such day. I may have less chance to trade long without any price correction.