You must read previous articles and
watch above chart carefully to understand this article completely.
Today’s outlook: -
I gave the support of 5550 well in
advance. We kept on trading with positive bias from 5550 levels. It took just
six days to come at 5730+ levels. Readers must have enjoyed a handsome profit. Technical
charts are still suggesting for further advance. In the given charts you can
see that MACD has emerges its buy signal in the last trading session. Till now
things are looking safer in my views. I can sense some more rise even from
current levels. Why cannot we hit 5785 to 5815?
One must remember that we have
December month ahead which has a history of being good for bulls. It is giving
me the sense that November month has formed its platform.
Note that we have one full eight
waves Elliott cycle which has ended at 5548 and now we are in the new wave
progression. There were little hope on Tuesday about parliament and we have
seen shoot up of 90 points. Now, it is almost clear that government is now
confident about numbers and they will go for discussion on ‘FDI in retail’
under rule 184. End of deadlock in parliament might be the trigger for the
beginning of a rally.
By Monday-Tuesday only, we have
forecasted that government will try to convince DMK and BSP to get their number
and will go in discussion under 184. Things are almost shaping the same ways. SP
might try to stay out of voting (as they were by mouth in opposing FDI in
retails).
What Elliott wave is saying? If I
assume that 5548 is the beginning point of new up wave then this rally may have
some bigger length. It is just the development of first up wave. Do you want to
get the idea of length? Look at the chart and its previous wave. First wave
begun from 4770 and end at 5180 roughly. So the total length was 2.618 times of
waves ‘1’, which end at 5815 as top. So based on that we may see levels near or
above 6050. Sounds so interesting? How can stock market move in simple ways?
You can expect something to bring challenges in between. Only time can answer
what can those be.
Conclusion for Nifty – I try to be
in the long trades for most of the time in past six trading days from 5550. I
am still having long positions. I will prefer to hold my long deals. Remember
one correction is coming but those may have not have length great than 60
points. As I said above, we can expect nifty to hit 5785 to 5815. Even 5700
will act as good trading support. At the beginning of the week, I spotted
target as 5700 to 5720 for the week but those are coming well in advance.
S&P 500 – It has given another
up towards the support of 1390 to 1385. This support was mentioned. Do not
expect sharp rise everyday. Now rise will come with consolidation but this
might be the good beginning for December months. Do not afraid in advance, US
people will surely handle fiscal cliff.
Regards,
Praveen Kumar
