Earning Wave

Nifty fell from 12440 to 9600 level. Yesterday it broken long term support trendline and closed below it. Intensity of selloff indicating that, this pain likely to continue further. Range for the day rose up to 700-800 points in nifty 2000-2500 points in sensex. Very wild moves, average trader hard to trade. Below 9700, nifyy next crucial retracement levels are 8700 and below that 7500 level. Sgx nifty already trading near 8800 Level. Secure capital first, without it trader can not do anything.  Normally , average trader takes blind trades in this kind of market. Avoid it. Stay away from market and wait for good opportunity, otherwise, capital loss in the form of stoplosses. Avoid revenge trading. Its hard to stop falling market single handedly. Wait till negative sentiment to erode and wait some time for  normalcy  in markets. In 2009 bull phase begun around 2550 level and top made around 12440. 38% retracement level already broken. 50% retracement at 7500. We shall see whether this p

Impulsive down wave still in force. Avoid longs till it complete its formation. One minor wave down is still pending to complete  impulsive down wave. As per the latest data, 3rd impulsive down wave still in force and one minor inner wave down is pending to complete.  It can fall to anywhere between 10200-9950. 10000-9950 is strong support for Nifty. Volatility rose to 31.56.  We can observe that from past one month, we witnessed sharp moves in market. Wild swings changing direction very fast. Catching these kind of wild swings are very tough to analysts and impossible to normal traders. Elliott Wave Principle Helping me to catch these wild swings most of the time. Now come to current scenario, there is one more minor down wave is due and after that rebound can resume as part of counter trend wave. Major trend is still downside. Any bounce is counter trend only. Traders can utilize these wild swings as best trading opportunity as these swings range is huge between 150-400 point

Bulls can stage back and can lift market higher. Monday nifty witnessed severe down fall due to global markets and Domestic bad events. Intraday it fell down to 10295 and later managed to close above 10450 level. As of Now, Impulsive down wave from 12240 to 10295 almost finished. From here, we can expect decent pull back rally towards 10500+ levels. Nifty has strong support at 10200-10000 zone. Option Chain Data also suggesting that nifty has strong support at this zone. Hence, short term traders can initiate fresh long positions between 10280-10350 zone for higher levels target. Globally, Crude prices also recovering from multi year low levels. Market can take cue and surge higher. Intensity of bad news slowly fading out. Sentiment can improve slowly. Resistance 10700-10600-10500 Supports 10300-10200-10000. Regards, Suryadev Bandari Research Analyst

Nifty broken 10500-10400 support zone easily. Selling pressure intensified. Step aside and wait for next clear signal.

Nifty witnessed huge gap down opening today. Sudden fall in Crude prices and Global market selloff are major reasons for this. For the short term point of view, nifty trading near important support zone 10500-10600. On Upside nifty facing resistance 10800-11000 zone. Hence, Avoid aggressive short selling. Markets already oversold and any time technical pull back rally possible from current levels. Options data suggesting that,  10500 strong support for today. This level may not be break. Long positions can be initiated for intraday bounce, keep stoploss below 10480-10460 levels. Banknifty options data suggesting that 26500-26600 strong support zone. Avoid fresh short selling as long as nifty trades above 10500 spot level. Regards, Suryadev Bandari Research Analyst

Cover short positions. Bounce Possible from current levels. As mentioned in last forecast, nifty completed minor down wave today at 10840 around. From here, counter trend move can begin and nifty can bounce from current leve 10900 towards 11200-11300+ levels. Avoid short selling at current levels as Technical indicators showing Bullish Divergences. Option data also suggesting that 10800 level acts as support for short term and Bulls can step in to initiate fresh long positions for short term. Impulsive down wave which was started from 12246 has appeared to be completed today and counter wave in form of Bounce can be start any time from here. This is good opportunity for traders those who which to initiate long positions for limited upside. Keep strict stoploss below 10740 zone for long positions. Every dip can attract buying support from Bulls. Trade accordingly. Regards, Suryadev Bandari Research Analyst

As expected nifty almost completed sideways range bound momentum today. Previously 11450-11550 levels expected as upside target of counter trend move, But as per latest data and latest chart pattern, upside appears to be limited to 11375-11400 zone only. Hence, those who initiated long positions at lower levels around 11100-11150 zone, Book full profits in Long positions. As mentioned earlier, Major trend is down and this bounce is part of counter trend. As major down trend can resume anytime. Book profits in Long positions and Avoid building fresh long positions. Option data analysis showing that 11400 appears to be strong resistance for this week. 11200 appears to be highest open interest in Put options. Hence, today's range for Nifty is 11400-11200. Risky traders can initiate fresh shorts at higher levels. Keep stoploss at higher levels. Regards, Suryadev Bandari Research Analyst