02 August 2017: Nifty Elliott wave analysis: Above new all-time high we can expect more rise and rapid rise.

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

Analysis for 31 July 2017: -

On 01 August 2017: FII Net Sold – 945.83 INR Crs:  DII Net Bought – INR – 1390.65 Crs

Well, once again Nifty has closed on higher note with new all-time high. Technical support of 9940 got a respect and remains untested. This it is itself a sign of great strength. I am expecting the levels of 10400 levels. This rally has many great extensions and this can still extend more.  

I have a view that as long as it is above 9900 levels we have great possibility of hitting 10400 levels. For today’s session I am expecting market to open above 10130 levels and then a fresh wave of rally. Sooner or later this market can able to show the power of fresh money. This market may not see any easy top formation. I am bullish since 9000 levels and I am still suggesting to buy in any dip.

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 showing for opening above 10130 levels. This is encouraging. Above 10150-10160 some trapped bears will be forced to cover their shorts and they can take index around 10220-10240 levels. This is my anticipation. It is safer to buy in dip with suitable stop loss.

BANK NIFTY August future – 25200 levels has also done and market may be looking for more extension in rise. This index is surely going to impress more from current levels. There is no point of shorting sooner. I would not be surprise to see levels of 26500-27000 levels before Diwali. One can expect strong technical support at 24800-24600 levels.