22 May 2018: Nifty Elliott wave analysis: It slipped below 10555 and next likely support will be at 10440. Even a little pullback wouldn’t help much.

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

Analysis 22 May 2018: -

On 21 May 2018: FII Net Sold – 496.03 INR Crs:  DII Net Bought – INR – 1190.56 Crs

This was expected and it closed much below 10555. This is a clear sign of threat but looks like it has over done in short term. From euphoric impulse, we are on sixth day today. Even if pullback comes then also it may not sustain. Question is, can we expect pullback? My answer is that we can expect at least one such attempt and what can be better than today when global market is doing well.

I am expecting attempt for 10555+ levels today and then once again market can exhibit weakness at some higher point. It may not be safer to short without pull back.

For today’s trading session, market is likely to take moderate to flat opening with possibility of pullback with can take this to some higher levels near 10555. I am not very firm for today’s trade. If it shows weakness near top above 10555 then only can plan to trade short else market may reflect some strength. Be careful for trades. All possibilities are open.

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

Strategy for Nifty May future – Nifty future once again goes the way I was expecting and slipped faster once it broke 10600 levels. Now, it has trading support at 10500 and the break will give 10440 levels. I would rather prefer to trade short on rise if it gives signs of weakness near top. Let us see if it comes.

BANK NIFTY May future – It is playing around 25800 support levels and this may give first sign of pullback. This may be more impressive than Nifty if pull back comes. Time is on for pullback but take caution. If it breaks below then who knows it can again slip shaper. Sooner or later this will fall but for the time being I am eyeing for pullback.