01 March 2017: Nifty Elliott wave analysis: Support remains same at 8800 levels. Pullback or break down?

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

01 March 2017: -

On 28 February 2017: FII Net Bought – 1146.23 INR Crs:  DII Net Bought – INR – 268.34 Crs

I have nothing great to add for today’s analysis. I stick on point that market is turning heavy at higher end. This market needs a fresh buyer at current level to move higher which may be difficult. Well, even after all odds I must add that so far this is just a pullback and I cannot name it as sign of weakness. Crucial support is at 8800 levels.

For today’s trading I am expecting Nifty to open on flat to negative note. It has done nothing great in last session. Well, we saw a closing which was well above the low compare to its trading range. It is giving all hints that lower support of 8830-8800 will work. I am not sure that anything great is going to happen sooner. It can either be a soft trade on some bounce from lower levels again. There is no firm signal for great profit taking so far. It can be applicable if it can break 8800.

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 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 March future – My study remains same as of yesterday.  For today, take a note that if it can sustain below 8900 then we can expect some extension of price correction. May be, if it works then 8830-8800 may come on screen. Let us see.  Do not trade a dull day.       

BANK NIFTY March future – There is no need to change views so far. 21000 levels will act as resistance the way it did in past few days. There is a formation of short signal on hourly chart when it was trading at 20800 levels. At that time it has developed a technical target of 20400-20300 levels. Remember 20300 is also a short term technical support. Will it make or break at those levels? Only time can answer.