05 April 2017: Nifty Elliott wave analysis: A fresh ALLTIME high must invite a short covering rise very soon. Today, tomorrow or anyday!!!

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

05 April 2017: -

On 03 April 2017: FII Net Bought – 534.45 INR Crs:  DII Net Bought – INR – 33.29 Crs

I said on Monday that I am expecting 9300 on Nifty by this week only. We got some good rise on very first day of the trade. I am expecting this to extend as of now. RSI maintains strength backed by fresh momentum. Things may be good for today also. Somehow it is giving me a feeling that market may extend more above 9300. I am still not able to see short covering kind of rise.

Basics of technical analysis are saying that at all time high there is no resistance as those are newer levels. One must avoid any kind of shorting adventure. There is no toppy formation coming so far.

What can be the next possibility above 9300 levels? Well, it may be complex to answer but I will not surprise to see Nifty hitting towards 9500 levels. I must repeat that as long as Nifty is above 9000 we can expect fresh money to hit anytime with good intensity. Global market is firm to neutral but no threat yet. Economy data is also supportive for rise.

For today’s session, one can expect a positive start. In simple sentence, I can say buy the pullback on the hope of 9300 as target. We get start close to or above 9300 itself. Will we get a pleasant short covering rise? This is still a question.

Caution note is clear – first one has to watch for weakness on small cap and mid cap indices. Before top, there may be the days where mid cap and small cap indices will be negative and bluechip index will maintain flat to positive note.

Strategy for Nifty April future – Nifty April future looks to open at 9280+ levels. Remember, we do not have short covering yet. If this can able to maintain above 9300 then I can expect for short covering rise. We got little in last trading session but I want a violent up side.  One should maintain strategy to buy pullback.

BANK NIFTY April future – This index is running at 21500 levels and this is my threshold. I can expect fresh strength from current levels if fresh money hits the market. Well, I will prefer to trade long only if it can stay above 21600-21650. Let us see if we can able see that levels or not. As per as supports are concern we can expect good trading support at 21300.