18 December 2017: Nifty Elliott wave analysis: Roller coaster ride is possible. Unless it go above 10490, I do not see a buy. 10420 and 10490 is decisive.

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

Analysis 18 December 2017: -

On 15 December 2017: FII Net sold – 921.03 INR Crs:  DII Net Bought – INR – 635.44 Crs

It’s needless to say what is going to happen. Market will dance on the mood spread on latest assembly poll result. When I am compiling this article ruling party BJP is found struggling. Well, charts were giving me a sign of fall from past many days without crossing 10490. I was not aware about reasons.

I have no position but just a view. It looks like poll outcome is going to be a reason. I do not see a possibility of BJP moving out of power in Gujarat but results may not be what they were looking for.

In short, it looks like BJP is paying the price of a complex GST.

For today’s trading session, Nifty is likely to open on flat to nervous note. Unfavourable outcome may make it BLACK MONDAY. Just do not trade. Charts are in favour of fall. Rise is likely only on one condition, i.e. it has to cross life time high first.

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 – I have no position and I am not in favour to trade. Well, after poll I may in intended to trade on short side. I may be in better position to trade tomorrow. We have not done much in past week. This week is going to be crucial before union budget. I am seeing a secular trend to emerge which can sustain longer.

BANK NIFTY December future – I have no trade on this index from long time. I am still in avoiding mode. In my view, this index is heavily overpriced without much reason.  26000 may be a last word to speak about. I do not see much extension. Market needs a trigger and that may be long away from this point. Market will look forward for next year’s budget.