25 September 2012: Nifty Elliott wave analysis: First bad news for this market will be the stop of good news. Wave theory is suggesting that 5720 will be important resistance for short term. No great confirmation for fall yet.

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

Today’s outlook: -

Yesterday, I have discussed about the negative divergence on RSI. It is still running but I must say that this kind of divergence is time bound. We for first negative close yesterday. What all we need is another negative close. Weakness of RSI can be fruitful we manage to close below 5650. On higher side 5720 will act as stiff trading resistance.

As of now, it is not indicating for immediate fall. European markets as well as American market are also on pause but we have not yet seen any great selling. There are fresh concerns coming on European market. Question will be asked on ECB decision and QE 3 as well. It is completely true that none of the economy data is giving anything for improvement. That’s why I said, “Stop of good news will be first bad news”.

Stock market all across the world has moved sharper after ECB decision and QE 3 but results will not be fruitful. Key for all such decisions is having a basic concept and that concept is itself doubtful. How can higher stock price generate jobs?

What should be done to come out of this kind of mess in economy? In my view, governments need to generate job. (I am saying about all countries). It can never be a good idea that everything has left on private players. Monetary easing or QE 3, these are just a charity for corporate. We may have more adverse impact. Just think that if they fail after such big steps.