30 May 2017: Nifty Elliott wave analysis: Usual choppiness expected again but do not conclude it as bearish sign. Possible support = 9440-9370!!

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

Analysis for 30 May 2017: -

On 29 May 2017: FII Net Sold – 709.97 INR Crs:  DII Net Bought – INR – 290.53 Crs

We saw some price correction yesterday from higher levels and this is confirming me that we may enter in to zone of choppy trading sessions right now. It will convince you that market can fall now but then exactly on its own time it will bounce again. It will be same exactly as of past many times.

I can quote two important supports, one is at 9440 and then at 9370 levels. I do not think that it can break 9370 so easily.  

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 to negative note. This is not a sign to play short yet. I suggest that one should wait for some lower levels to add long in dip with suitable stop loss. I may be in better position to get a possible level of bottom tomorrow after seeing today’s low.

Intraday technical support will be at 9570 and 9530. I am not quoting any resistance on higher side is at 9640. Cross above 9640 will give 9700 in a day or two. Money is still on the table who are waiting to buy.

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 do not think that today’s bottom can sustain for intraday. Here, we have a possibility. We may see opening low taking support at 9560-9550. So nearer levels may provide you can opportunity to trade long from lower levels with small stop loss. I am not keen in intraday trader. I am more interested in taking long for positional.

BANK NIFTY June future – Once again, after a great gain it is taking pause but do not misinterpret it. We can again see a big flow on higher side. Technical chart is still bullish. One can trade long from technical support. Well, support may emerge at 22900 or 22700. Let us see where it will give chance. I am not favouring bearish trade so far.