06 April 2017: Nifty Elliott wave analysis: It’s a caution day as global market is not remains same as of yesterday.

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

06 April 2017: -

On 05 April 2017: FII Net Bought – 340.13 INR Crs:  DII Net Sold – INR – 194.05 Crs

Nifty extend as expected and hit a high at 9273 levels. Today is going to be eighth day from the low of 9024 levels which was a gap fill low. Technically, this extension can go to hit a high around 9300 but this may looks to take some time now. Global market is not supportive now. DJIA slipped more than 1% in past trading session from its high point and even futures are trading lower.

This drives the SGX Nifty to trade in negative zone. So is it alarming now? No, it just can hit sentiments but technical threat is still not present. For caution, suppose if nifty trades below 9200 levels then only I will consider as first sign of weakness. Well, even after global weakness, this point is well 65 points away. I am avoiding long for the day.

For today’s session, one can expect a negative start backed by SGX Nifty. Trading threshold support will be at 9200 after gap down. One may consider that Nifty may take a 40-50 points negative start.  

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. I will look on small cap and mid cap index to compare relative under performance.

Strategy for Nifty April future – Nifty April future looks to open down with loss of 40-50 points which itself is just not good to trade long for the day. Suppose, if it failed to fill gap down then this may turn to be bear gap down which it itself a bad formation on chart.  If it starts trading below 9220 then we can expect levels of 9170-9160 as next support.

BANK NIFTY April future – BANK NIFTY has closed just above 21600. Well, support if it breaks below 21400 after gap down then one must avoid any kind of bottom picking. This may extend well on down side. If fall comes global in nature then things may go on reversing note. Well, 21400 is make or break levels.