23 May 2017: Nifty Elliott wave analysis: I am still hoping UP. Choppy down is not a threat on Nifty, it’s just a breather.

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

23 May 2017: -

On 22 May 2017: FII Net Sold – 321.27 INR Crs:  DII Net Bought – INR – 1262.64 Crs

So far Nifty has a high at 9532 and we are at 9438. This is just not enough to say for down. It is just a reaction of events that has passed. Even Yesterday Nifty was close to 9500 in opening quotes. We are moving close to May month expiry and I believe based on charting cues that Nifty has points to make a new all-time high.

Few stocks may undergo price correction time to time but blue-chip index is far from a top in near term. I am definitely focused on money flow in each sectors and stocks. Somehow, banking index is not very attractive in term of price movement. The participation from banking sector is a need if Nifty wants to move up further. It may just be a breather and sooner we will see better participation.

For today’s session, I am expecting market to open on positive note as indicated by SGX Nifty. I am still quoting two important trading supports; one is at 9400 and next is at 9370. As long as 9370 holds we can expect market moving up only. Near to derivative expiry traders should be careful but I feel that it should favours bulls only.

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 – SGX Nifty is suggesting opening to come around 9480 levels. Well, if this can sustain then I can expect levels of 9530-9550 by today itself. If short covering based rise comes then we can expect trading levels of Nifty future to be around 9600 too. In the down side 9400-9380 has proven as good trading based.  

BANK NIFTY June future – This makes me little concerned but I think that it is just a matter of time in term of participation. I am not giving levels for this index. I am just not going to touch it right now as strength is missing for trading. I can just hope that 22400 levels will not be broken so easily. Let us see if money hits this index near expiry but surely, it is concerning.