09 May 2017: Nifty Elliott wave analysis: Dead Sessions cannot be taken as sign of weakness. We can expect support at 9270!!!

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

09 May 2017: -

On 03 May 2017: FII Net Sold – 542.47 INR Crs:  DII Net Bought – INR – 663.33 Crs

These are not very exciting market. It is just dull and boring at higher levels. No one is ready to negotiate, neither bull not bear. Well, I still cannot name it as a sign of weakness. One can say that it is looking tired and hence taking a breather. I do not favour short unless some sign of weakness emerges at higher levels.

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.

The level of 9270 is a key. I must say that I am off to my long trades and not participating in the market. I am ready to take any deal, long or short but it depends on momentum and range. If used to run dead like now there is no use to trade.

For today’s session, I am expecting market to open on flat to positive note. I am not taking any call for the day or even for the weak. My major view is that we should avoid market for this week. it may be dead. If it breaks 9270 and sustain then it can see some price correction but this situation is not very likely to happen sooner.

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 are almost on same levels from past almost nine trading sessions. This is not very encouraging to trade but I can expect some upside unless this session also turns dead. In case of fall, we can expect market to take support at 9285 levels. Below 9285, if this sustains, then things can be worrisome. Well, I fair choice is long trade for the target of 9400. I am worried about dead sessions.

BANK NIFTY May future – Bank Nifty came at 22800 and this was in line with my expectation.  This index is trading better than Nifty. As long as sectoral index performs market may not fall easily. Think, if it has to extend its rise then we can expect levels of 23000-23200. This is great levels to talk. Technical support is at 22700 and at 22500.