08 February 2017: Nifty Elliott wave analysis: Policy day – trend will remain up as long as it is above 8740!!!

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

07 February 2017: -

On 06 February 2017: FII Net Sold – 201.13 INR Crs:  DII Net Bought – INR – 1620.03 Crs

I discussed about the levels of 8740 and its importance. It was down yesterday and now we are RBI policy day. One day down cannot be named as weakness. Nifty is on support but 101% these are the days of extreme caution. Remember, many tops used to come in February. If top comes in February then mostly it turn to be high point of the year. Momentum is strong but litmus test of momentum will take place now.

I still repeat for long term view, “It’s simple, either a new five way to start or double top.”

For today’s trading I am expecting Nifty to open on flat note. Two important supports for Nifty now are 8740 and 8660 which can save market from any bigger jerk. Rest depends on RBI policy outcome. I strongly believe that RBI will not disappoint the market. If that’s so then I have fair reason to believe for some higher levels. Well, what’s if RBI disappoint?

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 – Up or down , trend will remains intact as long as Nifty Future at least respect 8740. Its policy day so we should not deal much. Let us see the outcome. On higher side 8900 may also be a possibility if market like policy outcome.

BANK NIFTY February future – Time has come justify this rally. Will RBI goes in line with trend which is set up by BANK NIFTY trend? From technical charts, I am in favour of positive or pleasant news. At least market   should respect the outcome. Shall we bet 21000? I cannot say for such bigger target but charts have some hint for bigger up trend. Well, with this high move, it may make a final top. So, be carefulllll…