11 May 2017: Nifty Elliott wave analysis: Now expect 9500 on NIFTY. We may see 10,000 too on Nifty without meaningful correction.

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

11 May 2017: -

On 10 May 2017: FII Net Bought – 893.36 INR Crs:  DII Net Sold – INR – 229.73 Crs

I was expecting 9400 and I got it yesterday and signs of fresh move are very strong. Nifty has next logical target at 9500. Well, I was expecting 9500 since it goes above 9000 marks.

Take a note that as long as 9270 sustains we can have at least one such move which throw greatest ever optimism based rise and that is still missing and hence this rally not even close to be done.

At one sense, if one looks then one can see the reverse H&S pattern with ascending in nature. This pattern is giving me the target of 10000 levels on Nifty. This is definitely big and perhaps it will give us extreme optimism rally which is expected.

For today’s session, I am expecting market to open on positive note as suggested by SGX Nifty. My first target on Nifty for the week has done but now I am expecting 9500 so come sooner or later. I strongly suggest buying any dip with limited and disciplined stop loss.  

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 has already close to be done by 100 points of rise and we can about to see for next 100 points of rise. One can opt on strategy of buying in dip.  9500 levels may cone on Nifty May month future by today itself. Even if it missed then also it will be done in coming few days. Technical support is at 9400 levels.

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.