18 May 2018: Nifty Elliott wave analysis: Support for Nifty is at 10600-10560 and then a possible panic fall. (To save fall-today must be positive close)

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

Analysis 18 May 2018: -

On 17 May 2018: FII Net Sold – 830.94 INR Crs:  DII Net Bought – INR – 428.92 Crs

I have updated for the fall to be steeper one the break of 10700. Nifty goes in the same way. Today is Friday and market is not shaping well to get support at lower levels. Fibonacci based retrenchment is showing that market can extend its fall towards 10560 levels too.

I can expect some trading support at 10600 and then it can get next support at 10560 levels. This is definitely alarming on charts although this warning sign is not visible on momentum side. This kind of pattern deserves caution.

For today’s trading session, market is likely to take another soft opening. Technical charts have a sense that it can get support 10600 levels after losing support at 10700. There are many momentum technical indicators which are indicating that this fall can turn nasty sooner. Remember, May fall of this kind has a bad history if it get support of momentum. I cannot deny such situation.

Avoid any kind of investment as market is still looking expensive.

Strategy for Nifty May future – Nifty future has seen almost 200 points of fall. It is likely to open around 10670. Afterward we can expect trading support at 10650. Break below 10650 will give you a quick fall of 30-50 points. On higher side it will face resistance at 10720-10740 levels.

BANK NIFTY May future – I have already quoted for the possibility of 26000 which turned a reality yesterday. Now, technical charts are shouting for the next support at 25800. I am firm on my view that this index may be in trouble in near future. Impulsive and short term rise can be utilized for trading purpose only. A nasty fall will come sooner !!!