You must read previous articles and
watch above chart carefully to understand this article completely.
Today’s outlook: -
It was two days of mammoth rise which
pushed Nifty above 5815 levels. I was sensing this to happen when we have seen
first recovery from 5550 itself. (I can hope that readers would not have betted
on 5400 on that time). It seems that rise has shocked the bulls also with
intensity of rise. Well, but we have seen so many surprised in past many
months.
So, what can we bet next?
Firstly, we have seen a rise from
5300 to 5800 on the announcement of reform.
Then, we slipped from 5800 to 5550
on the fear of implementation of reform.
Now, on the hope of implementation (as
parliament back in function), market moved from 5550 to 5825.
Compare above given facts. I am sure
that even current rise of 280 points must be looking small too. True, it is. We
have to see more massive rise ahead. So do not day 5800, it is better to say
just 5800. I am strongly suggesting that does not matter what happen to the
rest part of the world but we may not see any great dip.
Please give me a discount of 50-60
points of pullback if comes. Those are very logical to come any time. Today is Friday
and eighth trading day from the recent bottom of 5548 levels. After two days of
euphoric rise, we may see some breather. As I said yesterday, this is just the
beginning of wave ‘1’. This wave will not finish unless we see at least one negative
close. Just think that if wave ‘1’ is giving 280 points of minimum then what a
full wave can do.
Technical charts are still
advocating for historical December month of trades. If government able to
implement even 50% of planned reform then also we will see a new all time
sooner. I am trying to keep my biasing long. It is better to buy each and every
dip. It is looking like significant correction will come either in the month of
January or February next year.
In between, political drama will
continue and the new topic is ‘reservation in promotion’. Who cares this
political propaganda?
Conclusion for Nifty – I have
mentioned that we might get rise in the zone of 5780 to 5815. I got the higher
end. Today it 8th day from 5548. We may have technical resistance at
5850 levels and then at 5880. I am expecting a pullback today but I am not too
sure. I will use this profit booking to buy stocks and indices.
S&P 500 – I have already
forecasted for consolidation and choppy moves for US market. Those zones of
consolidation will continue in the zone of 1405 to 1424. I can sense a target
of 1445 after the end of this consolidation.
Happy weekend in advance,
Regards,
Praveen Kumar
