You must read previous articles and
watch above chart carefully to understand this article completely.
Today’s outlook: -
Rise has started from 5548 and not
it is facing resistance at 5900 levels. Most of the time market has
successfully closing towards intraday high which is the reflection of sentiment
in Indian market. This is the hope of reform and today is the day for litmus
test. Voting will take place today and market is assuming that UPA government will
win the voting in Lok Sabha.
Representatives of SP and BSP have
opposed FDI in retail in debate but they have yet not declared their view for
voting. Just think they are opposing FDI in retail when discussing in
parliament and it will be really very ridicules if they vote in favaour of FDI.
Market is expecting this to happen that they will oppose in debate but will not
oppose in voting. If something happening like this then it is called Indian politics.
You can never bet on any side. I am neutral.
What is the possibility for today in
parliament? If SP and BSP give any hint that they are going to oppose
government over the FDI issue then do not expect voting. Government will go for
voting only if they will be confident of winning else they may defer the
decision. Although, it is not likely to happen but you must know all possible
outcome.
Wave theory is still hinting for
resistance at 5912. Cross over of 5912 will give levels like 5950 and then 6000
levels. Currently, we are trading in 5th wave and one must note that
we may expect extension in 5th wave also. Most of the time, market
is trading with high bullish mode in fifth wave. There is no any big concern of
charts yet as of now. If one has to be concerned then only vix is troubling which
is indicating for one pullback. Have a look on the given chart. We need to
accept that bulls are in full command even in range bound trading. We have not
yet corrected by even 50 points after hitting high at 5899.
Conclusion Nifty: Then we will have technical
support in the following way 5850 > 5820 > 5800 > final @ 5770. There
will be few important resistances, one is at 5900. Assuming for 62% of wave 1 is
giving me resistance at 5905. I am considering that 5900 to 5912 will be a zone
of resistance. Dip can be the opportunity to buy. Cross over of 5912 will give
towards 5950 and then 6000 marks to give extension in fifth wave.
S&P 500 – US indices are almost trading in
a range but biasing has converted too negative again on the concern of fiscal
cliff. We have good trading support at 1405; break of 1405 will give us next
support at 1390. It looking like US
Regards,
Praveen Kumar
