06 November 2017: Nifty Elliott wave analysis: I am not keen to buy above 10400, a long awaited wave based target has already done.
You must read previous articles and watch the given chart carefully to
understand this article completely.
Analysis 06 November 2017: -
On 03 November 2017: FII Net Sold – 9690.84 INR Crs: DII Net Bought – INR – 33.40 Crs
Welcome, I took a longer compulsive break due to some unavoidable
personal reason. Market is definitely not same where I left. It is making newer
all-time high day to day. We saw infusion of money to banks by government of India.
I can say one thing that “W” was desperately needed a fundamental news flow and
market got that.
What’s my take now? I need to clarify that News of capital infusion to
public sector banks is not so small but how market is responding. This is not
the kind of boost which index should have got. It should have added few more
hundreds point more. So comparatively it is less.
Market has timid response as it is already too high. So my point is
still that market is expensive. My anticipated wave target has done at 10400.
Anything above this is extension. This may add more time based extension but
price based extension may not be great.
For today’s trading session, Nifty is likely to open on flat note. I am
on observation mode right now. Charts are suggesting that Nifty may take a test
of 10500 levels but this is looking more like a resistance. If this is going to
be resistance for today then it may be a very crucial resistance for whole this
week. If Nifty break below 10400 then we can be in the mode of small price
correction of 100-150 points.
I am not going to be greatly bullish anymore as I was bullish from
9000 and now I am expecting side wise to correction time. 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 – SGX Nifty is suggesting that Nifty can open at 10430 levels. It
has rock hard resistance at 10485 – 10500 levels. If bears dominate then we can
see a price fall towards 10350-10300 levels. If I have to pick a
trade then I may pick a bearish trade for today.
BANK NIFTY November future –
Well, if you would have asked me earlier that what would have been a levels
after 2.11 Lkhs crores capital infusion then my answer would have been 3000
points of Bank Nifty. Question is how it has responded? This is not the firm
response. It is just the response which is saving banking stocks. It can save
index for 3 to 6 months. For today 25700-25750 is going to be trading
resistance.
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