08 December 2017: Nifty Elliott wave analysis: Bounce may end sooner and a newer fall may hit. Be cautious before Gujarat Assembly Election.

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

Analysis 08 December 2017: -

On 07 December 2017: FII Net sold – 1075.62 INR Crs:  DII Net Bought – INR – 926.68 Crs

It hit a low around 10033 and then bounced. Well, multiple odd bounce came in past also and it is likely to come in coming days also. Still, one thing is clear that market does not have that kind of momentum which it used to have in past months.

One can say that this may be a consolidation for rise. Well, if this can be the fact then we should not see the formation of lower bottom. Hence, I have strong point to give edge to bulls. I must warn that the moment global market goes on pause we may see an alarming fall in Indian market.

I am drawing your attention towards one more point; it is Gujarat assembly election 2017. The outcome of this may have a great impact, if ruling party loses its impact.

For today’s trading session, Nifty is likely to open on flat note with a possible resistance in the zone of 10220-10240 levels. Even if it surpasses then also I am not expecting any great impact for bulls. If it shows sign of weakness at higher levels I may opt to trade on short side again. Where is the support? Well, it’s well understood support at 10000 levels or nearby.

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 December future – It is the time again to see where this rise will stop. My likely resistance is at 10240-10260 levels. At the max it can hit 10300 levels. It cannot extend much above those levels. In the lower side we can expect a decisive support at 10160 levels. Suppose if it trades below 10160 then we can expect immediate weakness which may be the likely case.

BANK NIFTY December future – It has a logical support at 24800 and then took a bounce. Now it is near to 25200 levels. Well, in my view I am not expecting much extension from the current levels. Still a favourable move can give us a level of 25500 levels. I still do not prefer to trade this index due to uncertain volatility. It may be very safe due to risk rewards ratio.