08 August 2017: Nifty Elliott wave analysis: Market may consolidate this week. Easy rise is not possible any more but target intact at 10400.

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

Analysis for 08 August 2017: -

On 07 August 2017: FII Net Sold – 199.21 INR Crs:  DII Net Bought – INR – 308.15 Crs

I am not active on index now. It has done one levels of technical which was at 10100 and now I see possible choppy trades. Will strength come after these choppy moves or will weakness come? I do not think that we can easily predict it. It has already extended too much from the levels of 9000 and I am turning cautious. Although, I am still believing that 10400 may come. My point is that now market is in the phase where next 300 points is are going to be tougher one.

I am going to neutral mode. Technically, market is still having great strength. As long as it is above 10000 we should avoid unnecessary short. It has two important technical supports one is at 10000 and next is at 9940 levels. Nothing great to add.

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 running at 10100 levels. This is itself showing that market it not moving. Technical levels for break on higher side can be 10160. Technical support is at 10000 levels. If it trade in choppy node then it is safer to avoid. Do not trade for brokers.  

BANK NIFTY August future – 25000 zone itself is a support with follow up support at 24500-24600 levels. On higher side it can touch many levels. Next phase of rise will not be easy one. Technical levels on higher side may not be easy to predict. This can see pause for this week. In all, I am not interested in trading this index at these levels for this week.