29 May 2017: Nifty Elliott wave analysis: One can expect more bullish move at least for the first half of June. Technical support 9440!!!

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

29 May 2017: -

On 26 May 2017: FII Net Sold – 274.14 INR Crs:  DII Net Bought – INR – 1008.56 Crs

We predicted for 9600 when it has crossed above 9000 levels. It came in line with my expectation. I must say that I am still firm on my view for 10000 on Nifty. This target will also come in coming 3-4 months. What I mean is that we may not see any meaningful correction before 10000. Will it hit 10000 as dot? May be yes or it may miss my little margin but levels near to 10000 is definitely expected by me.

Once again I am repeating that one should not take flat or series of choppy session as sign of weakness. Those are in fact reflecting consolidation.

I am still suggesting that do not take 100-150 points dip from top as sign of weakness or with a logic that market expensive and any excuse to be standing against money flow. Money flow is strong and market may advance more. From a pullback of 9018 market never shows weakness on chart.

For today’s session, I am expecting market to open on flat note but I am expecting a fresh rise based on fresh breakout. Recent chart history is suggesting that market used to be choppy after each breakout and become active for next breakout. In that case market may spend some time here. My suggestion is that one should use dip to buy. Take a note that as long as 9440 sustains the fresh up trend will get strength.

Intraday technical support will be at 9570 and 9530. I am not quoting any resistance on higher side as today is the first day after breakout.

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 have already said earlier also that June month usually has broader trading range but direction used to be on negative side. This time also range will be broader but direction should be on higher side. Even in worse case at least first should be on higher side. I am not betting anything firmly and I am flexible to accept any move but right now I am still bullish. One can expect 9630-9650 at least for the times begin.

BANK NIFTY June future – Since long I am quoting for 23500. If I remember correctly, we quoted this when it has just crossed 22000 levels. It came at 23300 and showing more strength. Shall we bet for 25000 on Bank Nifty now? Well, nothing is impossible and traders always enjoy this kind of moves. For today’s session I am expecting this to hit 23500 in reality.