16 February 2017: Nifty Elliott wave analysis: Nifty has support at 8700 levels. Will this support work?
You must read previous articles and watch the given chart carefully to
understand this article completely.
16 February 2017: -
On 15 February 2017: FII Net Bought – 225.84 INR Crs: DII Net Bought – INR – 248.98 Crs
It failed at 8830 and slipped. Well, this is confirming a resistance
developing at 8830. Nifty is in the vicinity of 8700 support levels. Below 8700
we can expect support at 8660 and then at 8600. One must not be impulsive for
trading. This can convert in to weakness. Take a note that stopping at 8830
must have a meaning that market wants to give us a message.
For today’s trading I am expecting Nifty to open on flat note. Afterward,
market will get support at 8700. Well, I cannot claim that market can give
respect to 8700 support or not. If this breaks 8700 then we can see immediate
fall towards 8660. Although, it is not looking easy to expect such break but I have
warning signs and one has to be cautious. Remember, rally in stock market never
goes in straight line and same is true for fall.
Warning sign must be here from February top. It may prove to be a
counter trend rally on long term count.
This remains part of my article. We may be under bear market till 31st
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 – One must have a look for support at 8720 to 8700 levels. It is
likely to open around 8750-8760 levels which is not so hopeless node to start. It
is going to be interesting to see how will react afterward. Technical support is
there on lower side. Will it work? Will we again see selling from higher end?
BANK NIFTY February future –
Bank Nifty is a hope for Nifty and it is still on optimistic note. I cannot
name any sign of weakness unless it goes below 20000 levels. Just the way,
Nifty closed below 8740. Well, if market goes on revival then Bank Nifty will
cone to give good support to the market sentiment. There is no point to trade
short.
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