02 May 2017: Nifty Elliott wave analysis: Nifty 9274 and 9250 will be key supports. On higher side scope still alive for 9500 levels.

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

02 May 2017: -

On 28 April 2017: FII Net Sold – 1150.43 INR Crs:  DII Net Bought – INR – 1684.44 Crs

Welcome back after a long vacation. We are in new month now. We have few important points to observe right now on chart as given. First thing is that the magnitude of length between new top to previous top is not big. We can see the progressively upward channel. I must say that this cannot be taken as sign of weakness.

I have a strong reason. Exactly, same thing has happened in recent part in one of the premier market called USA. Can this replicate in India? Why not? So I am expecting and still sticking on my point for the target of 9500 on Nifty before deciding next course of action.

Next important thing is that we already have one approximate gap fill up formation with low of 9019. This low point will act as strong threshold for bulls. It will easy to pick a top this time. Let the rally go.

For today’s session, I am expecting market to open on flat to positive note. We are around 9300 and trading support also lies at 9274 which was previous top. One can expect some demand emerges in that zone. My view is that one should buy any dip to hold for few days unless something odd happens.

Take a note that I am not expecting big trading days with bigger moves sooner. It may be small-small trading days only. so one may not have good scope to deal for intraday.

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 – I still believe that it will take support either at 9330 and then at 9300 levels. Technical supports may be an opportunity to add long at lower levels. I am expecting upside. Somehow, it should take a test of 9400 sooner or later. There is no point to be short.  

BANK NIFTY May future – My study remains same. I am still expecting 22500+. 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.