02 June 2017: Nifty Elliott wave analysis: Looks like my anticipated big up-day is coming today. 9700-9750 is a possibility.

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

Analysis for 02 June 2017: -

On 01 June 2017: FII Net Sold – 517.31 INR Crs:  DII Net Bought – INR – 171.65 Crs

I have already talked about a violent day which should give a big trading range. It seems there is no big waiting and it is coming today. We have technical break point at 9650. Once it can sustain above 9650 then we can expect 9700+ levels. Only question left is that you have long or not. It is the perspective of choice. Technical support in this up move is too comfortable which is at 9570-9530 zone. Traders can and traders should afford this risk.

Medium term support is still at 9440 and 9370 levels. There is nothing which I can quote as sign of threat. Technical up trend looks to sustain and we are not close to any kind of top yet. Fresh break out used to come in every 8-9 trading session at the max. It is an indication of strong money flow.

For today’s session, I am expecting market to open on gap up mode which can be as big as 40-50 points by global thrust. Suppose if it opens around 9670 and sustain then even 9630 will act as trading support. There is one big possibility that market remains firm throughout the day and goes towards 9750 levels.

3-4 days technical support will be at 9570 and 9530. If it can sustain above 9650, then we can see some better buy from fresh money. One must watch Bank Nifty very closely.  It can outperform Nifty very sooner any day and anytime.

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 can say that even yesterday was an opportunity to enter long. If one has then one can keep some suitable stop loss to hold. If trade range widen then we can see better return in the month of June or in this rise. It is going to be interesting Friday today. Above 9670-9680 one can expect fresh and 50 point more on upside.  

BANK NIFTY June future – I like to retain my analysis as of yesterday. 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.