25 April 2017: Nifty Elliott wave analysis: A reversal to challenge for 9274. Make or Break today???

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

25 April 2017: -

On 24 April 2017: FII Net Sold – 279.55 INR Crs:  DII Net Bought – INR – 984.17 Crs

Nifty opened on very strong note yesterday and passed 9160 resistance levels in morning hours and then took one sided move. This forced me to believe that market is not going to be back to lower levels immediately. Moment it goes above 9200 it got better confirmation.

Now it is going to be one more attempt to make a newer all-time high. I repeat that Nifty level of 9274 is a stiff resistance but a test of this level cannot rule out. Today is definitely going to be an interesting trading session.

For today’s session, I am expecting market to open on flat to positive note. Momentum suggests that if Nifty sustain above 9225 – 9230 then one can prefer to be on long side with an expectation of levels near to 9274.

9274 is going to be a very stiff resistance. Once it crosses above 9274 then I can expect a move for 9500 levels. Do we have enough fuel for this this kind of fresh up move? This remains a big question. That’s why I am saying that today is going to be interesting session to watch.

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 May future – It has sustains above 9200 yesterday and generated a buy signal which was surely beyond my expectation but it has happened. Well, as it has happened so long runs to challenge for a new all-time high today. I can say that I have no idea what is going to be at higher levels. Either it can violently up or it can be violent reversal. Those who went with long trade can hold but if not then just do not trade at higher levels.  

BANK NIFTY May future – This index is the only one which shows the sign of strength. As long as it is above 21700, we should believe for up and only up. Technically, add long or hold long with stop loss 21700 which may be little big. On higher side it can reach the levels of 22200 in short time span. There is no point of thinking short at any levels.