07 May 2018: Nifty Elliott wave analysis: Nifty resistance at 10710-10720. Do not opt trading long unless fresh money hit the market.
You must read previous articles and watch the given chart carefully to
understand this article completely.
Analysis 07 May 2018: -
On 04 May 2018: FII Net Sold – 1628.23 INR Crs: DII Net Bought – INR – 1084.09 Crs
Welcome back!!! I am writing after a long time due to some of my
personal works.
Market did a lot since I left. Before leaving I had projected for the
possibility of 10000 which hit on 26 February. Afterwards, it took a zig zag
moves to go in favour of bulls. Well, that a past and question is what is going
to happen next. As of now, I am looking at two crucial resistances. One is at 10706
and next is at 10910. These are based on Fibonacci retrenchment. Global cues
are definitely better compared to normal days with great gain on DJIA.
For today’s trading session, market may open on flat to positive note.
I see a resistance emerging at 10700-10720 levels. I am not suggesting shorting
immediately but it has great chance of facing massive resistance in moving
above 10710. In doing so, market will give a possible sell signal. Buying from
this point of time may not be great opportunity with limited amount of rise
left. In the down side if nifty breaks below 10600 we can expect some great
signal to short for two three days point of views.
Avoid any kind of investment as market is still looking expensive.
Strategy for Nifty May future
– For today I suggest traders to keep an eye on initial rise which may take Nifty future towards 10710-10720 and
then opt shorting with stop loss above 10750 for a possible dip of 100 points
in 2-3 days. Well, above 10750, it may open a room for 10900 levels. Be opportunistic.
BANK NIFTY May future – I am
sceptical towards banking index since this January itself. Right now it is
running at 27725 and it my view that this index is already running higher with
great amount of risk. I strongly advised traders to avoid this index from any
kind of bullish activity. Short term technical charts are suggesting for
resistance at 28000-28300.
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