04 May 2017: Nifty Elliott wave analysis: Choppy sessions should not be named as sign of weakness. Target of 9400 minimum is still intact.

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

04 May 2017: -

On 03 May 2017: FII Net Sold – 517.74 INR Crs:  DII Net Bought – INR – 112.36 Crs

So far, we have three dead trading sessions in this week. This is in line with my expectation. Dead sessions may not be taken as sign of weakness although we can see tired market. Even the basics of technical analysis are giving good trading support at 9270 levels, a previous all-time high.

As long as we are able 9270 we can definitely hope for a move towards higher levels. If this can sustain then we can expect higher levels. In the down side we have good technical support at 9270 and then around 9200 levels.

This rally should see many extensions as long as it is above 9000 levels on long term chart. So far, there is no great top sign. If it comes I will update.

For today’s session, I am expecting market to open on flat to positive note. One can say that we may have a possibility of another day on dead index. Let us see for good trading support at 9270. I will opt buying at lower levels on the expectation of fair bounce again. I am still optimistic for 9400 marks to be tested sooner or later.

Money flow is still not concerning. Sectoral index is also more or less in favour of rally although it used to turn critical sometime.

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 may open around 9330 levels. We can expect a small pullback which may be opportunity to add long at lower levels. On higher side, I am expecting levels around 9375-9400 to come but I am not sure if this can come today. Shorting may work time to time but that is not a concrete and technical call.

BANK NIFTY May future – Bank Nifty is still trading around 22300 and I hope for 22500 levels to be tested hence my study remains same. 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.