02 January 2013: Nifty Elliott wave analysis: It came very near to mentioned 5967 levels but not crossed yet. Cross over will give us 6000 levels. It may come today??? (Support @ 5918)

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

Today’s outlook: -

Finally deal closed at USA in very last minutes. We have seen little higher opening and kept on moving higher in a steady way. Technically 5950 to 5965 is a very obvious target on trades above 5923 levels but it came as gap up. I have already stated that above 5880-5900 we will not have any critical trouble for rise.

I stick with my view. One should look for the cross above 5967 levels. Crossover will give us 6000 marks. Will it come today? At least, we can expect attempt to cross 5967. One must note that this rise is coming as we have seen recovery with a save at 5838. Although it was critical for many times near to those range of 5900 to 5840.

One should look at the given chart. It is giving a cross of higher supply line. As long as we are below 5967, one may have a logic for the probable formation of ‘double top’, if you are bearish. Well, I cannot deny but I know that we will get all such answer by today itself. Even yesterday’s high was above 5963.

I need to add that technical indicators are still comfortable to bet for further rise. it can turn concerning only if Nifty stand below 5900 marks. There are many blue chip stocks which are trading with some good price breakout.

We will see the beginning of Q 3 results in a week time so market will try to adjust more. As well, this market is betting for some rate cut in current month. So far, everything looks good only.

Conclusion Nifty: It still needs to cross 5967 levels on higher side. We may get a flat opening but it will try to cross 5967. Suppose if it sustain above 5967 for 5-10 minutes then we can expect an attempt towards 6000 marks. As long as it is above 5900, we can hope for multiple attempts for higher side.

S&P 500 – It is a buy from 200 dma which was at 1390 levels. It has yet to open after deal over US fiscal cliff. We can get a good trading support at 1418 -1413 levels. My first target is at 1445-1450 levels. Then I will watch out for 1475 to cross. I have said few months back that 1475 would be the high for 2012.Now we are in new year and S&P is likely to hit new high.

Regards,

Praveen Kumar