23 June 2017: Nifty Elliott wave analysis: It is almost confirming that 9710+ levels may be the top for mean time. A brutal correction is possible.

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

Analysis for 23 June 2017: -

On 22 June 2017: FII Net Sold – 198.68 INR Crs:  DII Net Bought – INR – 455.21 Crs

I am now more firm on my call of price correction. It does not matter if we fail to see broad range in the month of June so far. Range may open any time and if not then we can expect broader range in July month. Well, it is looking to see fall sooner.

It has almost confirmed the possibility of fall when bull best effort failed at top after making a newer higher high. It has failed to attract new buyers. Now, based on chart we have “The most crucial support” is at 9570 levels on Nifty. Break of this support will give great indication of upcoming fall. It should happen sooner or later.

Shall we talk about the possibility of 10% correction? Take a note that this rally is shaper and even quicker than my expectations. Historically, this kind of rally may have a possibility of profit taking wider than expected. Shall it be bought at dip? Yes, why not. I am not focusing on bigger price correction first and I will be the first buyer at the possible bottom.

For today’s session, I am expecting market to open on negative side again. Now it is going to test the support of 9570. Take a note that that so far it was tested resistance and now it should start testing supports as bulls may feel tired. Suppose if it breaks 9570 today, i.e. on Friday then we may have possibility of price correction in the following week.

I can say that first sign came from sectoral performance. Under performance goes critical and hence I believe that some money may be pulled from bluechip index too. Before you think that I am bearish then let me update – I am firm on my target of 10000 on Nifty. This will just be the meantime price correction which is a usual and healthy phenomenon.

Strategy for Nifty June future – I added more shorts yesterday in Index as it was opportunity. Now, I have just one take. I am going to wait with short deals. My first threshold point is at 9570. On higher side 9700-9720 has already proven resistance. Market does not seem to have buyers at top. Let us see.

BANK NIFTY June future – I have already quoted that this index is not weak and it has almost tested 23900. Will it give some strong sign of shorting? I can say that this is the index which is stopping me from aggressive shorting. What would have been if this also gives strong sell? It has thresh hold support at 23400 and that’s too far.