23 August 2017: Nifty Elliott wave analysis: Do not prefer to trade long on flip flop trade. H&S on development.
You must read previous articles and watch the given chart carefully to
understand this article completely.
Analysis for 23 August 2017: -
On 22 August 2017: FII Net Sold – 828.69 INR Crs: DII Net Bought – INR – 435.05 Crs
Fine, I said on Monday that market has less room to trade on long
side. I was right. Since then I have restricted my activity on index. Nifty is
resting near 9800-9750 levels. Well, even if bounce comes there is a chance of
getting sold at higher levels.
Have a look on the chart where we can see the development of H&S
pattern. Possible n-line is at 9685. Here is a firm words, if it breaks and
start trading below 9685 then we can see the possibility if 9300-9200 as the
logical target on down side. If this happens then it would name as almost 10%
correction. I must say that we can now on such possibility.
For today’s trading session, Nifty is likely to open at higher note
but I am not firm for top to sustain. I have not added any trade yet on index. What
I believe is that Nifty may not get of this 100 points range easily. It does
not matter what technical is saying I need a concrete signal to trade which may
be short on top. Let us see how it comes.
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 – If I take 9800 as a mean price then, 50 points above or below does
not matter. This market is not decided to take a direction. Soon it will take. I
can see the possible short trade on the development of H&S pattern but that’s
not easy to deal right now. May be, I will not trade today also unless I see
weakness on top.
BANK NIFTY August future – This
index will be key for bears, if this can sustain below 23900-23950 levels. Will
it break and sustain? I am repeating that we have limited support if it sustain
below 23900 levels. This can see some big hammering by bears on lower side. who
knows in worse case it may get support after fall of 1000 points. Its too
alarming.
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