23 November 2012: Nifty Elliott wave analysis: Nifty is expected to extend its gain for today also with previously mentioned target at 5650. Cross over is a need for further gain. Keep one eye on parliament too.

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

Today’s outlook: -

It is very tough to deal in the market which has parliament related hopes. In past few weeks we have seen better performance by Indian indices compared to global indices. It was the hope of reforms steps that makes investors to go on bullish mode. Most of the investors prefer to hold his positions. All these development pushed us for range bound trading.

Parliament adjourned yesterday and market turned cautious and limits its gain. There is nothing which can suggest me that parliament can work today. It is a best technical platform for further rise but political deadlock is prime concern. I am expecting at least a flat opening. Here is a point to be cautious – most of the swing has length of 100 points from low. If you look at recent low and yesterday’s rise then we have almost moved by 94 points. This is giving a hint that 5650 will not easy to take out. So, are we going to get fall from higher levels? I cannot deny the situation but equally it is looking tougher to break even 5600 levels.

This is throwing just one possibility for me – prepare for a dull – range bound session. I need to add that technical charts and indicators are saying for rise only. Current rise may sustain for up coming few more days.

If government can act on even 50% of its planned bill then also market will try to move higher only. Today is Friday, we may expect tradition second half (specially post 2 pm) reversal. I have already said for yesterday that market might be nervous near 11 am and it was. Even for today timing for 11 am might bring nervousness.

In the above chart you can watch the pattern of moving averages. This kind of moving averages just require cross over to bet for further gain. Take a note that 50 days moving average is at 5645 which was almost tested yesterday.

Technical support will be at 5600 > 5583 and then only at 5548.  

Conclusion for Nifty – One can expect support at 5600 for trading. On higher side I am expecting a test of 5650 at least. Well, right now I am scared about winter session of parliament. If bad news has to come then it will come from New Delhi. Technical charts are still suggesting for recovery to run. One must watch banking and technology stocks for trading.  

S&P 500 – I am saying for recovery from 1345 and till now we got almost 3% from those levels. Expect recovery to continue at least till 1400-1405. Study remains same as of yesterday. 

Regards,

Praveen Kumar