31 July 2017: Nifty Elliott wave analysis: Expect choppy trades and this can be max for correction. trend remains up and prefer to be long from support.

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

Analysis for 31 July 2017: -

On 28 July 2017: FII Net Sold – 223.12 INR Crs:  DII Net Sold – INR –424.67 Crs

I gave my expectation of 10100 for expiry day and it worked well. I have presented a wave extension chart which is saying that we have a support at 9940 levels. It may not be easy to see the break below 9940. On higher side I am expecting a room for 10400.

This week may not be great as market is expected to be on side near after hitting historical levels. I booked my long on my desired levels above 10100 and now I am again going on waiting mode.

Do not take choppy sessions as a sign of weakness as it may try to hit higher levels again very soon.

I am maintaining my bullish instance from 9000 onwards. Length of the rally should be from 9000 to 10400 levels. It hardly matters if this magnitude goes 1400 points exactly or goes as 1300 points or 1600 points. Call was bullish above 9000 and so far it is pity successful.

For today’s session, I am expecting market to open flat to positive note again. As long as Nifty is above 9940 one can easily maintain bullish instance. I am not the mood to take trades on index as of now after booking good gain in July months but my view is bullish. I usually prefer to wait before bullish again. Suppose if it breaks 9940 then also it can get support around 9830 levels. These are definitely the levels where bearish calls are hard to take.

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 August future – SGX Nifty is still above 10000 marks and it just maintains the mood. After a breather it can again take a big rise in this month of trade too. Who knows if this can hit 10400 by this month. I have no call for the day, just taking holiday form trade. I am expecting a choppy trade today.  

BANK NIFTY August future – 25000 have done and I am taking a breather now. Technical support is now at 24800 to 24600. I am not going to take trade on it as first priority although I will take first signal from this index. Be prepare, we can expect as high as 27000 levels on this index. It is just a view we can expect further signal to trade.