16 August 2017: Nifty Elliott wave analysis: If it saving at 9700 then second compulsion for long is to trade above 9800.

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

Analysis for 16 August 2017: -

On 14 August 2017: FII Net Sold – 1638.83 INR Crs:  DII Net Bought – INR – 1619.17 Crs

After a fall of 400 points we saw a breather from the low of 9685 which was just nearby 9700 levels. So far I am considering it as breather although it may see revival. Basics of technical analysis are suggesting that today market may advance and recovery should last at least as long as 9870-9900 + levels.

Shall we opt trading long now? Well, this recovery is not giving me great comfort so far to trade on long side. I am sitting on side line to see the strength. It is safer to wait for strength. If I have to take biasing then it may be on long side but we should avoid trading on soft biasing trend.

For today’s trading session, it is expected to open around 9780-9770 levels. If this can sustain on support line then we can expect strength on higher side. It is suggesting that move above 9800 will have better conviction for a move towards 9850-9870 levels. Let us see if this happens. It is for sure that days of easy rise is over. If one has to trade long or short then timing and picking is very important.

Top are still expected to come at 10400 but I am not too firm now. I was bullish from 9000+ and I will take market part wise. Firstly, I am focusing if this recovery can go around 10000 levels or not. First cross of 10000 was important but now it is more important to see the second attempt.

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.

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 – It is expected to open around 9800 levels. I will opt trading long with many terms and conditions. If it can sustain tall above 9800 then only we can expect for fresh 50-70 points on higher side. If it just trading below 9800 then bears may be back at any moment. Do not trade on tug-of-war king of situation.

BANK NIFTY August future – 24000 is a support and I am looking market reaction at this levels. It has bounced from 23944 levels. Well, approximately it has make at that level. This index is not stable as Nifty. I will avoid this index for trading long. I must remind that trading supports are not very frequent if it breaks 24000 levels.