01 June 2017: Nifty Elliott wave analysis: We may be very close to a violent to open big trading trade. Up or Down? Yet to get great confirmation.

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

Analysis for 01 June 2017: -

On 30 May 2017: FII Net Bought – 1048.53 INR Crs:  DII Net Sold – INR – 939.54 Crs

I have already hinted earlier also that choppy trading sessions are very much possible. Today may be another such day. I cannot name these choppy session as sign of any kind of profit taking. This is just not hinting that money flow can end. We saw many instance earlier also where market goes in this way.

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. 

For today’s session, I am expecting market to open on flat to positive note. We may expect resistance at 9650 and that’s also because it was yesterday’s high point. Cross above 9650 will indicate a run towards 9700 levels. I will prefer to buy in dip for intraday session. We may be close to a violent session ahead which can open big range for June month.

Intraday technical support will be at 9570 and 9530. If it can sustain above 9650, then we can see some better buy from fresh money. Remember, we saw better performance by Bank Nifty yesterday. Do not look economy data much seriously. Those used to come but market has already discounted those.

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 – Well, so far, all intraday dips were bought by money and so we can say that money were right. Following the same trend I can quote that 9590-9580 may be a good intraday support to trade on long side. Will it hit 9700-9720 levels? Ideally, it should take a hint and even cross over is possible. A violent session is waiting and I can just hope that it must favour bulls. This is my anticipation.

BANK NIFTY June future – Why I am saying to buy this index even on flat days. This can give better return in strength which used to come in extreme of one sided move. Technical support is at 23100-23000. I am still eager to see how it is going to react at 23500 levels. Let us see. I am anticipating a violent up day which should be very close. Just hope violent moves will not favour bears.