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Sgx Nifty 24th Dec 2015
Sgx Nifty / Nifty Futures today bounced back by 70 odd points and still failed to cross our resistance area of 7879 spot Nifty given last week. As per our Indian Stock market Analysis / Nifty Prediction we are absolutely clear that current ongoing move is nothing but a corrective wave and we see this wave ending between 7950-8100 give or take a few points and after this ongoing move ends, we will see a sharp downside panic towards 7500 it can even breach 7500 during intraday trade and stay below 7500 for a few trading days but once again as per our Stock market Analysis / Nifty Prediction we do not see price sustaining below 7500 spot Nifty, sure during panic bottom formation we can even go towards 7400 or may be a little lower even from 7400 however we do not see prices lasting on the downside for long and then a sharp bullish move towards 8800-9000 will begin. Hence from a positional stand point buying in panic around 7500 should be done. For my dear friends who want to do research you may refer to wave counts of 2011 and see what is going on to know the larger picture.
Now that our positional view is clear, lets move to our short term outlook ion Nifty Futures / Sgx Nifty. Since it is amply clear the ongoing wave is a corrective one we do not see prices sustaining above 8100 or may even the up move halts between cmp-8100 and we do not see any significant move sustaining above 8100 so on higher side be careful and avoid buying at higher levels. Now why is the current move a corrective it is simply because as per basic Elliot wave principles and Gann wave principles if the move or advance is real or it is impulse move then in that case the previous swing high must be taken out in lesser amount of time. Now the previous swing high or in this case also X wave top is at 7980 and the high of 7980 was made on 2nd Dec 2015 after which we have seen a sharp fall towards 7553 which took 8 trading days now the current move from 7553 towards cmp has already consumed more than 8 days and is still no where near the top of 7980 which is still a good 120-130 points away from today’s prices. Further if we purely look at the volume charts the volume on the advancing side from 7553 to todays high has significantly lower volume, if this was the actual move towards 8800-9000 then volumes should have been very high and the previous top of 7980 should have been taken out much faster ideally in not more than 75 percent of the time under the best case scenario but none of that has manifested. Further we were initially expecting a panic bottom around 17th Dec 2015 but that made a top around our resistance zone / level of 7879 spot Nifty. There by making a inversion in time cycle which simply means both time and price will be extending on the downside. There are many more complex explanations as to why the current move is not the real move towards 8800-9000 but I think for most readers from the point of view of understanding we have explained in a sufficient manner.
Nifty support and resistance for tomorrow is at 7715 and 7879. Nifty 50 spot levels mentioned. As mentioned before focus on the big trade of the year buy in panic around 7500, for short term traders on rise towards 8100 can go short but be very quick to book profits and keep trading in and out. SGX Nifty Minor trend is Neutral. SGX Nifty Major Trend is Bullish.
Good Trading To You!