Monday, 27 November 2017

27 November 2017: Nifty Elliott wave analysis: Be cautious on derivative expiry week. 10400+ is still a meaningful resistance.

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

Analysis 27 November 2017: -
On 24 November 2017: FII Net sold – 416.28 INR Crs:  DII Net Bought – INR – 427.63 Crs
We are on derivative expiry week and we saw a hit on 10400 on Friday’s session. I still stick on my view that this should be maximum possible stretch for rise. I have quoted for the fall on expiry week when month began. Now, the time has come for extreme caution.
Technical resistance above 10400 will be only at 10490 but I do not think that market has enough steam. If market is heading higher then we has good participation from global market only.
For today’s trading session, Nifty is likely to open on negative note as indicated by SGX Nifty. Suppose if it fails to stay above 10400-10404 then we can take a confirmation for a possible slide this week. Even if market rises I will not prefer to participate. Threshold support will be at 10300-10280 levels.
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 – As of now SGX Nifty is showing for opening around 10380 and this is going to give us immediate resistance at 10420-10430 levels. If cracks below 10350 then we can expect some rapid slide. This study is applicable till expiry day. Be cautious due to derivative expiry this week. Market can be brutally volatile.   

BANK NIFTY November future – I am not active on this index since stimulus. In my view it is not going in the expected way although it is up. It is giving signs of tiredness which may be an early indication of weakness. There are many banking which is not in parallel with this index. 25800-26000 is a zone of resistance and it may fail to see a crossover.  

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