26 November 2012: Nifty Elliott wave analysis: Nifty has saved the support band of 5583 to 5600 and so expects more rise. Crossover of 5650 will give us levels of 5666 to 5680 levels. Prefer to buy dips.

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

Today’s outlook: -

Simple conclusion from past two days of trade is that market is almost trying to ignore the negative development coming from Indian parliament. I am still warning that deadlock in parliament is not at all good. Market is trying to ignore as long as it can.

I am still not thinking that I need to chance my studies. Technical charts are still suggesting for a rise above 5650 levels. I have tried to be on the buy mode in US market and we have seen some good rise on Friday night. This will give us some gap up. Asian market has also seen rise on the hope of Greece development.

Suppose, if we open above 5650 and maintain that gap up then we can expect a move towards 5700-5720. This target may not come in one day but looking to hit in few days. We have a bounce from 5548 and those trying to see some rest near to 5650 resistance mark. This is primarily because market is trying to trade in 100 points of range.  

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

Suppose if by somehow parliament starts functioning then only we will try to move parallel to the global market. It is looking very tough but government has to find some solution. After monsoon session they cannot afford to go in this way in the winter session too.

Conclusion for Nifty – I am still hoping for a rise towards 5650 levels. Cross over will give us levels of 5680 which final target can be 5720 levels. One must look at auto and banking stocks for trading opportunity. As long as 5584 holds then do not try to short this market from lower side. Rise may continue and it may have potential to surprise. We may not have parallel strength as global market as long as deadlock continues in parliament. There are two way for rise. First is to hit 5680-5700 in one go of rise. Secondly, it may try to rest at 5666. Only time can answer which way market will pick.

S&P 500 – A rise from 1390 to 1410 is looking good. We may expect 1445 as final target but it seems that we may have one price correction towards 1390 is also possible before that. I will prefer to buy that dip too.  

Regards,

Praveen Kumar