07 February 2013: Nifty Elliott wave analysis: I am again suggesting watching for the support at 5940. Any break below 5940 will drive towards 5900 levels. Watch out for latest GDP data too.

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

For 07 February 2013: -

On 06 February 2013, FII bought INR 1137.96 crs and DII sold INR 1224.07 crs.

Nifty was moving in the range of 20-25 points only but look the participation by FII and DII. Easy money flow is still flowing in the Indian stock market. If you are happy with this money flow then just think for once why market is not moving north ward even after such massive money flow.   

Indian market is constantly underperforming the global market. Momentum is shifting towards down side. We have seen constant pressure with each 20-30 points of recovery which has happened trice in past two days.

I have already quoted for the support at 5940 levels when we were at the beginning point of fall. It is now resting near those given support. If it breaks 5940 then we can bet for further 40-50 points of further selling in Indian market.

It is still important to note that our market is falling even though global cues were stronger to stable. Last night, European market slipped to its 2 month’s low. Sooner or later selling will start in every single market across the globe. Firstly, it was India then Europe. USA and Japanese market is still waiting for its turn.

Remember, break of one support will the beginning for the move towards next support.

Based on pure technical, I have quoted for a rebound towards 6000 marks as it was saving 5940. We hit a high near 5990 then slipped again. It is almost indicating for the break of 5940. I cannot speculate but chances are very bright.

What is the reason for such fall? It is still unknown. Do not worry a lot about reasons when it will come it will come in massive ways.

Strategy for Nifty February future – It has lowest trade at 5964. Now, suppose if it sustain below 5960 (which should be a parallel support at 5940) for 5-10 minutes then it can begin fresh slide. Technical charts are suggesting that it should break lower with stiff resistance at 5995 levels. Market is likely to focus towards latest GDP data. Break below 5960 will give us levels near 5910. Sooner or later, this fall will come. Take a note that NIFTY future can see move massive downside on negative news flow.  

S&P 500 – We cannot have any great explanation for why US market is refusing correction. It should now begin with itself. It is heavy over bought and moving at stiff resistance zone (1500-1520).My first threshold point is too far at 1490. Based on accumulation pattern, I am raising threshold to 1498 now. I still have one question, “Will this market ever correct”? I am sure for just one thing that US traders are doing a bigger mistake by buying at this level.

Regards,

Praveen Kumar