19 February 2018: Nifty Elliott wave analysis: Topping @ 10600 in recovery may be the first sign for a pain towards 10000.

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

Analysis 19 February 2018: -

On 16 February 2018: FII Net Sold – 1065.99 INR Crs:  DII Net Bought – INR – 1127.78 Crs

I have already quoted for the intermediate resistance at 10600 and market slipped from the same levels. Well, apart from all that I am feeling that market has not responded yet on PNB scams. This may be a sentiment hurting event sooner or later. Impact has confined to the some selected banking stocks only but impact will be larger and may raise a question mark on corporate governance issue.

For today’s trading session, market may open on flat note but that may be due to improved global cues. Technical resistance is still at 10600 levels. If it starts showing weakness then we can expect levels of 10350-10300 levels by earlier this week.

Investment point of view, I have already suggested from December onwards to avoid pumping fresh money in the market as this rise cannot extend more. Remember, every rise is not the opportunity to invest or trading. It’s better to be safer sometime.

Strategy for Nifty February future – As long as traded sustains below 10500, it cannot show strength. We have no point to be on long side. If it favours then we will go to see a fall towards 10350-10300 levels. I may opt more shorting if rise comes. There is a fair chance of hitting 10000 marks on Nifty in medium term.

BANK NIFTY February future – A bad mood can spoil anything. Banking index has not yet reflecting the PNB crisis to its full extent. In my view, market will respond sooner on this news. This is much more serious than what it looks like. I am seeing a possibility of 24000 in medium term.