10 August 2017: Nifty Elliott wave analysis: Below 9900 levels, Nifty can see fresh weakness. Next support = 9800.

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

Analysis for 10 August 2017: -

On 09 August 2017: FII Net Sold – 841.44 INR Crs:  DII Net Bought – INR – 553.17 Crs

This was most perfect timing by us. Advised exit from long above 10100 and suggested to be either on side line or adding soft shorts. Now, it is giving almost 200 points. I am again repeating that days of easy rise might be over.

The next key threshold support is at 9800 levels. I am not sure if this can test this level or not. It may bounce or it may test 9800. One thing is for sure that this market is no more for light hearted traders. Upcoming 2 months are going to be very crucial with many roller coaster movements.

For today’s trading session, it is expected to open around 9900 levels. Can it able to show fresh weakness? If this can sustain below 9900 levels then we can expect fresh slip of 100 points more. Should pick the bottom for long? Well, I have no such plan yet as market mood may turn heavy depending on Indo-China tussle.

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 about to open at 9900 levels. Technical support is far away and may be 100 points dip is possible. On higher side 9960-9980 is going to be decisive resistance. There is no point of doing adventure on long side.

BANK NIFTY August future – I am not ready to add easy long anymore in these days. Days of easy rise have done and this index may get more hurt. This can slip around 24000 levels. It can get multiple resistances on higher side. On higher side it will get resistance at 24800-25000.