03 May 2017: Nifty Elliott wave analysis: Trend remains up even after mixed trading days. Minimum a test of 9400 is possible.

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

03 May 2017: -

On 02 May 2017: FII Net Sold – 611.82 INR Crs:  DII Net Bought – INR – 541.39 Crs

I have quoted for support at 9274 and it hit a low of 9270 and then bounced. This is showing that we have buyers waiting at lower levels. Well, I have presented a view that it suggesting me for a meaningful resistance at 9400. This works if it fails to break on higher side. It is perhaps this 9400 resistance which is causing Nifty choppy even after breaking 9274.

I still believe that momentum and money flow is in favour of Indian market and it can move higher to break 9400 levels.

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 still 9300 and trading support also lies at 9274 - 9270 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 – It gave an opportunity even yesterday to buy at lower levels which was around 9285. SGX Nifty is showing for opening around 9350 levels. I believe that it will again challenge the levels of 9400 on higher side. This can give us good result for those who has added long at lower side yesterday.  

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.