22 May 2017: Nifty Elliott wave analysis: Panic fall should be over now. Expiry week should give fresh rise for 9500!!!

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

22 May 2017: -

On 19 May 2017: FII Net Sold – 988.70 INR Crs:  DII Net Sold – INR – 349.21 Crs

I have already quoted for the support at 9370. Nifty hit a low around 9390 even in panic. It was great to see that Indian market has shown better resilience than any other global market. Technical support got a respect and it is a sign that we have left with steam.

This bounce is giving me great hope for a great move in coming months. My expectation is for 10000 for Nifty to come near to Diwali time. Even if correction comes then also it may be more than 5% anytime.

For today’s session, I am expecting market to open on flat to positive note. US market has closed on good on Friday’s trading session. I am expecting that Indian market should hit 9500 marks very soon. It may be done in a day or two or at least by expiry day.

I still quote 9370 as very crucial support. As long as it holds 9370 then we can expect market to head higher only unless some crucial resistance emerges. Sectoral performance may go on flip flop mode time to time but overall buyers are still interested in market price. Pricing looks expensive but it is still attracting buyers.

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 blue-chip 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 June future – I am hoping for an encouraging opening for the week. I am expecting that even after higher opening it should go to hit 9530 levels. Technical support will be at 9430 and then at 9385. Buying may be intensified if it short covering rise comes. Well, short covering rise has to come before expiry. So, one should not opt shorting anytime.

BANK NIFTY June future – It is still at 22800 levels and hopes are still alive. I am still hoping for this index to hit 23500. How will it come? Well, it will be a pleasure to see a short covering based rally. This is very close to happen. Technical support is at 22700-22500. This index deserves great attention as next big opportunity. There must be the time when Bank Nifty will outperform Nifty.