03 January 2013: Nifty Elliott wave analysis: Nifty hits 6000 marks after 2 years. So far trend is up and now the next thresh hold will be at 6020-6024 levels to take a move towards 6100 too. Support is only at 5980 and 5940.
You must read previous articles and
watch the given chart carefully to understand this article completely.
Today’s outlook: -
Nifty hit 6000 marks on very second
day of 2013. It has encouraged traders as well as investors. US US
Technical indicators are still not
concerning. In fact, MACD has given a buy signal yesterday on daily chat. This is
always treated as lag indicators but it cannot be ignored. It is important to
note that none of important technical indicators is yet in over bought zone. We
can expect pause in the worse case at higher levels but there is no indication
of price correction.
It is a good idea to add a long at
suitable levels and then kept on trail those long. One can get opportunity of
adding short or long for intraday but traders should not opt to forward short
as long as trend remains up. One should note that this market has potential to
move towards 6100 and then even 6186. Next question is about the support.
First immediate support will be at
5980. It is going to act for intraday. Can we say that every problem has solved
for the market and we should wait for much higher targets like 10%? It is not
like this way. What I like to say is that do not be over optimistic. Even if we
talk about 6200 or 6300 whose are just 3-4% rise from this time.
I am equally adding that we may see
another newer high today but market can react for profit taking from higher
levels. Even if it has to happen then also it can happen only from 6020 t0 6024
or little earlier.
Conclusion Nifty: Trend is still up with some target
near 6020 then 6024 will act as next threshold for move towards 6100 marks. Important
trading support will be at 5980 levels while short term (say 2-3 days) support will
be at 5940 levels. No technical indicators are concerning either on daily chart
or on weekly charts. We can see some intraday development on hourly charts at
higher levels.
S&P 500 – I talked about 1470 as target and
it came very near to this in just one blow up rise. is this good? I cannot say
but this rise is making market more confident. Now my call is that S&P 500
will try to come towards 1475 but fresh long should be taken only above 1475 on
sustained basis. One need to remember that we bounced from nearer to 200 DMA.
So far so good and nothing concerning yet a reaction against such sharp rise
will be good if comes. Those need to use as opportunity to add long.
Regards,
Praveen Kumar
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