16 May 2018: Nifty Elliott wave analysis: Looks like Karnataka state assembly result gave a short term top @ 10928.
You must read previous articles and watch the given chart carefully to
understand this article completely.
Analysis 16 May 2018: -
On 14 May 2018: FII Net Bought – 518.47 INR Crs: DII Net Bought – INR – 531.33 Crs
I have quoted for the possibility of 10910 levels and a follow up
correction. Market goes in a same way. Price correction was unavoidable in case
Karnataka got hung assembly. Technical charts were already showing this. Election
result just gave us an excuse. One must take this as warning sign. May month
correction has history of turning dirty especially whenever it comes in the mid
of the month.
Technical signs are showing for the possibility of 10600 levels. Those
who added short above 10900 must be enjoying.
For today’s trading session, market is likely to take soft to nervous
opening. In case of gap down opening market may go on pause note. Ultimate support
for the day is expected to be at 10700 levels. On higher side anything above
10820-10840 is likely to face resistance only. I am issuing a stronger warning.
Correction should take a halt before 10600 but if it breaks then fall or
correction can be nasty.
Avoid any kind of investment as market is still looking expensive.
Strategy for Nifty May future
– Nifty future retreat after an impulsive top and practically failed to sustain
much long above 10900 levels. I am definitely looking for the possibility of
10600 till the end of this week or by early next week. Unless it goes strongly above
10840, one should avoid buying.
BANK NIFTY May future – It
has a great high and great top above 26900. It closed on disappointing note. Well,
the way it corrected, market may go to hit 26000 on momentum. I feel that time
has done to trade long on short term. Any close below 26000 would be
concerning. Wait-watch and then initiate trade. It has a possibility of big gap
down.
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