19 July 2017: Nifty Elliott wave analysis: As long as 9700 holds on Nifty, up trend will remain intact. Its just a nervousness before 10000.

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

Analysis for 19 July 2017: -

On 18 July 2017: FII Net Bought – 317.44 INR Crs:  DII Net Sold – INR – 975.01 Crs

We have got just one day of fall and many started saying for top. Well, this is just not going to be as easy as one think. It is a predicted nervousness before 10000 marks. Remember, it still has potential to surprise market men. Hence, do not go short. I took my profit day before yesterday as quoted and now I am waiting mode.

I want to pass the market if it fall and it can fall little more but technical support will definitely emerge at 9700 levels. Take a note that 9700 levels is still too far and this correction came just due to overdone nature.

For today’s session, I am expecting market to open moderate note with optimism. If it shows strength then I will reload my long on index. Just see that Banking index is still stronger.

One thing is clear that you may not get any easy shorting this market. Market dynamics is denying any big price correction and this is not happening for the first time. Correction will come and definitely come but not right now. My expectation is that we are far away from any meaningful (10%) correction. 

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 an unusual and healthy phenomenon.

Strategy for Nifty July future – SGX Nifty is saying for opening around 9870 and then we can expect support at 9830-9800 levels. As long as Nifty holds 9700 there are no great convincing short trades. On higher side market can surprise traders anytime. Do not short as market will have potential to take “U” turn.  

BANK NIFTY July future – Now, as this is still around 24000 levels so we can say that strength in market dynamics is very much stronger. Technical buy is still applicable but buy in strength. I am still expecting the levels of 24500 to be tested and this is going to be historical.