Tuesday, 7 March 2017

07 March 2017: Nifty Elliott wave analysis: Market living on the edge of breaking 9000 to invite short covering rally to give New All-Time High.

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

07 March 2017: -
On 06 March 2017: FII Net Bought – 564.15 INR Crs:  DII Net Sold – INR – 481.96 Crs
We have great technical set up right now. It has almost formed a double bottom support at 8860 and closed almost 100 points higher yesterday. If it has to cross 9000 marks then we have another better day as today. Will it able to cross? Well, as long as it is saving 8800 I must say that market will definitely make few more great attempts.  
Reliance is on rise right now. Indian market has history in making top with last rise in Reliance. Will it follow the same trend this line? Only time can answer but as of now bulls has no great threat. If threat comes it will come in unexpected way. I must repeat that if market has to make a new all-time high then market will make it with outcome UP state election where market is anticipating a win for BJP. May be it can be a trigger and may be a next fuel.
For today’s trading I am expecting Nifty to open on flat to positive note. I am active on stock but not on index yet. As long as Nifty stands above 8900 there is no great point to expect any intraday weakness. I am equally not very confident for easy cross of 9000 but I will give edge to bulls. When we have so many better stocks, then why to deal index?
A new all-time is required. If that happens then it will be confirmation of next big rally in Indian market which can extend rest of the year without any threat of big price correction. In normal circumstances this kind of levels demands extreme caution to deal. Remember, may global indices have traded well above their previous all-time high with breakout.
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 – SGX Nifty is giving a sign of positive start around 8975 and then we will live with great possibility of hitting 9000+ levels. A simple view is that it can cross above 9000 to give a test of 9030. Sustainability will decide for a short covering rally to make a new high. It can happen either this week of early next week.

BANK NIFTY March future – Once again, it has chance of coming close to 21000 which may act as next technical trigger. We can see a possibility of hitting 21500 on good volume cross over. Technical support is now at 20700 and then at 20500 levels. So far, looks just to trade long but trading range may not give great comfort. 

No comments:

Post a Comment