Monday, 14 May 2018

14 May 2018: Nifty Elliott wave analysis: As long as it is above 10800, Nifty can be expected to take a move for 10903-10910.


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

Analysis 14 May 2018: -
On 11 May 2018: FII Net Sold – 325.44 INR Crs:  DII Net Bought – INR – 1163.35 Crs
In terms of event it is going to be a crucial week with outcome of Karnataka state assembly result. It seems that market is digesting the possibility of hung parliament and we must thanks to improved global cues. Nifty has already closed above 10800 levels after long time. As it is just above 10800 so we need to see the time that it can spend above this level.
Technical charts will be in favour of bulls as long as Nifty is standing above 10800 levels. My next expected levels will be at 10910 as shown in the given chart. Suppose if we see a positive news flow then we can even see 11000. Well, here is deserves caution. If market has to reverse in near term then nothing can be better levels than this one.
For today’s trading session, market is likely to take soft opening. Technical set up is suggesting a buy while tomorrow’s event suggests holding patience for 100 points swing. If technical favours then I will go for a soft buy with suitable stop loss. Take a note that Bank Nifty is performing better than blue chip index as mentioned form past few days.
Avoid any kind of investment as market is still looking expensive.
Strategy for Nifty May future – It was recommended to buy above 10800 for some quick gain and market unfolded as expected. It got a gain of 30-32 odd points. As things continue to be in favour of bulls then another extension of this rise is possible. Technical support is at 10770 levels and stop loss must be below those levels.
BANK NIFTY May future – It also went higher as expected and hit a high at 26430. Well, next crucial and meaningful mark to test is going to be at 26600+ levels. Technical support is at 26250 to 26200 levels. Buying in an option but be cautious at higher levels till tomorrow. Anything below 26200 may be the sign of alteration of direction.

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