24 October 2017: Nifty Elliott wave analysis: Market to go in sidewise mode for long time. It may be in the range of 9700-10200.

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Analysis 24 October 2017: -

On 23 October 2017: FII Net Sold – 81.51 INR Crs:  DII Net Bought – INR – 307.84 Crs

I prefer to be in side-line before Diwali. My prediction is that market may go in range for next 30-40 trading sessions. My bases of above statement are two major things. First is based on charting. One can notice for formation of a “W” pattern whose track record is good. This pattern, once develop, used to result a phase of indecisiveness. Second key point that I am not trying to be bullish is the underperformance of Bank Nifty. In fact Bank Nifty is trading in a narrowing triangle.

Trading range seems to be 10200 on higher side which can extend maximum towards 10400 (which is not very likely to happen) and on lower side 9700 may be base which may extend towards 9600 levels.

So market may make top but I will not prefer to be long anymore.

For today’s trading session, Nifty is likely to open on positive note as indicated by SGX Nifty. Technical support for intraday session may be at 10140 to 10100 levels. I need to be clear, even if it looks like market is in the higher side of the specified range then also I do not think that we can opt shorting easily. We may see expiry effect that can make market mixed.

I still like to quote that Elliott wave extension has a target of 10400 but will it hit or not it cannot be said.

Alter sense, if market makes a new all-time high then momentum can take Nifty towards 10400 levels.

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.

Strategy for Nifty November future – We are moving close to expiry day for October month series. Technical charts are looking to be in favour of bulls but that is based on hourly chart. My anticipation is that market may move up more till tomorrow followed by a fall on derivative expiry day.

BANK NIFTY November future – I stick on my studies which I am presenting from past many weeks. This index looks weaker than Nifty. I have a strong caution on this index. One must avoid this index for any kind of long activity. It has stiff resistance at 24500-24700 levels. In the downside we will not have too much support expect 23600.