07 November 2017: Nifty Elliott wave analysis: 10500 is the next resistance but market is not looking weak on momentum.

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

Analysis 07 November 2017: -

On 06 November 2017: FII Net Bought – 576.27 INR Crs:  DII Net Sold – INR – 263.84 Crs

It turned shy near at 10500 but it is not weak as it was anticipating. This is a sign of strength. I equally suggest that market may not have any big room for going up. Still, it is not down either. In my view, market may not come down easily but it will give many dull moves even at newer all-time high.

Global market is still firm and saving any possible correction but we may be close to a small trading correction of 150-200 point on Nifty. Indication of confirmation has yet to come.

It seems that market is in mood to buy all possible dip but price retrenchment is advising strong caution. We may not be close to any big price correction but overall market is heavily over bought and this can limit the price rise.

For today’s trading session, Nifty is likely to open on flat to positive note. I cannot consider medium term and long term caution for trading call. Call is simple, it has resistance at 10500 but it can surpass above 10500 then we can expect some more extension on higher side.  

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 10500+ levels. It has resistance at 10530 levels. If it can withstand above 10530 then we can see some more impressive rise towards 10600+ levels. Now, technical support is at 10460. Unless it goes below 10460, we cannot have point to consider shorting.

BANK NIFTY November future – Even though Nifty was stronger we have not seen any strength in Bank Nifty. That’s the reason I said earlier that market reacted in timid way to capital infusion. Resistance of 25700-25750 is still applicable. As long as it is below this level it is strongly suggested not to trade. I cannot say that we have weak signal yet.