20 June 2018: Nifty Elliott wave analysis: Relative strength is due to Reverse H&S pattern. Hope DJIA does not crack further.

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

Analysis for 20 June 2018: -

On 19 June 2018: FII Net Sold – 1324.92 INR Crs:  DII Net Bought – INR – 653.68 Crs

Nifty is relatively better than what US indices has done in past 24 hours. I have already updated yesterday on twitter that I am sensing a bear trap formation. It looks like I am right although I am not claiming with great conviction. SGX Nifty is showing almost a dead start when DJIA future is trading with a loss of 300 points.

Hence, I have reasons to expect improvement. At least I do not prefer to be bearish for the day. Rise against Reverse H&S pattern with come in to effect only above 10850. It has missed in first attempt. One high was at 10929 and another at 10893. It is interesting to see the next. Will it make or will it break? If it goes in favour of bears then it will definitely be a brutal one.  

For today’s trading session, market is expected to open flat. Afterward I am expecting support at 10710 to 10680 levels. I hope it will not break lower and hence it may be opportunity to trade long with caution. My concern is that what if DJIA cracks further. Hope it does not.  

Avoid this rise for any investment as market may be in a possible situation of big time divergence.

Strategy for Nifty June future – Nifty June SGX future is trading flat. Well, it is fine so far. I am expecting trading support at 10700 and then at 10670. I may prefer to trade long if it can see calculative risk and a possibility of desired bounce which I am hoping. If it breaks below 10670, then recovery may not come sooner and market will go under deep panic mode.

BANK NIFTY June future – I have already discussed the importance of the support of 26200. It has demonstrated those. If it makes at 26200 then it may see a recovery of around a percentage. If it does not then next two supports are 26000 and 25800. I do not prefer to trade this index due to higher risk.