27 April 2017: Nifty Elliott wave analysis: 9500 is still far but we can hope this levels in quicker than expected time.

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

27 April 2017: -

On 26 April 2017: FII Net Sold – 492.52 INR Crs:  DII Net Bought – INR – 1011.38 Crs

As indicated, market broke higher levels to register a new all- time high. We have derivative expiry for April month contract. Mostly expiry day used to be unpredictable. I still believe that market should have more upside and 9500 levels must be visible in few days’ time.

If I have to make a call for expiry day then I can take a call for rise based on short covering. Shorts are still in the system which will be forced to cover. Charting patterns are also justifying for more rise as suggested in the given chart.

For today’s session, I am expecting market to open on flat to positive note. Afterward, it should try to test levels of 9400 levels. Once it crosses 9400 then we can expect fear based panic short covering which can give some pleasant rise.

Can we expect reversal? Well, if this happens then it will be least expected. So far, nothing is suggesting for reversal but caution call is always alive.

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 – From 9200 onwards it has seen good 150+ points of rise. I am expecting Nifty to open around 9380 levels. If it sustain above 9400 then we can expect massive upside on expiry day. Technical support will be around 9330. One can expect volatility if it comes down as I believe that lower levels may be bought.

BANK NIFTY May future – Well, displaying tremendous power as expected it has seen 22200 levels in quicker time. Technical says to eye for levels of 22500 now. That’s looks too big but it is just 1% and why cannot we bet for this on expiry day. I must say that if short covering comes then rise can more violent. Does not matter what’s happen but shorting must be avoided.