technicality of nifty & outlook 20-8-15

· Resistances on NIFTY are 8531 / 8556. · Support Levels for NIFTY are 8455 / 8426 / 8381. · 3 consecutive days of range bound affair & inability to retrace the previous decline in less or equal number of days gives more advantage for us to conclude that most probably this is the 2nd corrective ongoing in the market. · Break of 8381 on Nifty will confirm it in all aspects, which is most likely to happen. · Extracting triangle Wave 'X' prior to the beginning of 2nd corrective indicates scope for bearishness in the short term.

THE OUTLOOK · We witnessed successive 3rd range bound & volatile trading session yesterday. · Internal Waves indicate that it is the 2nd corrective on going decline which started last week. · Banking, Auto & IT sector stocks are most likely to exhibit violent price actions. · Option traders should take full advantage of market conditions till expiry. · Positional Index & Stock specific indulgence is highly recommended. · Stock selection is important because even in the same sector, inverse movements won't be surprising because of individual stock's wave formations. · Good Luck ...