06 November 2012: Nifty Elliott wave analysis: Out performance and resilience in Nifty can give a result of test or may even try to cross 5730. If this has to happen then today is the last best day. We are still in the range.

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

Today’s outlook: -

Nifty closed above 5700 marks with last 45 minutes pullback. I have quoted yesterday that we can see fall only if Nifty able to sustain below 5680. It hit a low at 5679.50 and then rebounded. We have seen four days of gain in a row. Today is 5^th day from the recent low of 5583. I have expressed a view in recent days stating that this market might try to throw the weak hand from the market. If such thing happens then this market can take a rise. Now suppose if those has happen then it may have best day as today. If I am thinking in the bulls way then also I am not very comfortable. FII pushed 2 billion dollars in the month October but then also index remains unchanged.

In alter way; we need to focus on 5680 in the downside. Break below 5680 will give a thrust towards 5630 in a rapid way.

Question is what is going to happen? It is a very difficult question to answer. We need to accept that we are still in the range except for two trading sessions in between during RBI policy days. I am also giving views but market is not breaking any side in decisive way. We have seen some under performance by madcap and small cap index. If such performance continues then it can favour for bears.

Now, for today also my studies will remains same. I will focus 5680 as support and 5730 as resistance. Cross over of 5730 can give us 5757 to 5780. Break below 5680 can give us 5630 in few hours. I need to be very clear that do not stand short above 5730.

Global market must be watching US president election today. Outcome of this election will have some impact in global market. S&P 500 has saved 1404 – 1400 support band yesterday. It is keeping margin to trade any side for today I am still sensing that 1414 and 1435 will be stiff hurdle on rise while break below 1404-1400 will give us 2-3% dip.

So many views & strategies but finally this market has to decide where is want to move. Get ready for surprises.

Regards,

Praveen Kumar