08 November 2017: Nifty Elliott wave analysis: Pattern of sell off-pull back is likely to continue in the range of 10500 to 10240.

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

Analysis 08 November 2017: -

On 07 November 2017: FII Net Bought – 461.47 INR Crs:  DII Net Sold – INR – 2046.07 Crs

This was expected price correction. If one sees this from the intraday high, this correction came from 10485 which were nearer to the resistance if 10500 and then low came at 10340. I can repeat that significant support is at 10240. So, it still has room to see some more correction.

150-200 points of price correction may not be sign of weakness. This is just a usual reaction which used to come on this kind of top formation which came on daily basis.

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. The meaningful resistance is still only at 10500 levels. It may see pullback after yesterday’s sell off but such sell off may hit again to get the target around 10240. This may take 2-3-4 days time.

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 10400+ levels. It has resistance at 10450-10500 levels. Now, technical support is at 10350. Unless it goes below 10340, we cannot have point to consider shorting. On higher side resistance is applicable.

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.