15 March 2013: Nifty Elliott wave analysis: A surprise move came from nearer support of 5790. On higher side resistance will be at 5940-5971. This market may again try to slip from high but there is no initial sign of weakness yet after yesterday’s rise.

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

For 15 March 2013: -

On 14 March 2013, FII bought INR 607.11 crs and DII sold INR 829.19 crs.

Before I say anything about Indian market, I like to inform that Dow Jones got its 10^th rise in a row. US and European markets are moving higher day by day. All thanks to Mr. Ben Bernanke and Mario Draghi. Let us look at what has happened in Indian market yesterday.

In the initial hour market got some shocking news by corbapost on three Indian private sector banks. Market kept on moving higher after that. We got WPI data at 6.84% and market is still hoping for rate cut. It is looking like market moved higher on the anticipation of rate cut and stronger European cues.

Technical charts has closed on encouraging note but in my view Indian market moved due to excessive shorting. I still say that 5971 will be a decisive resistance. I am not ready to bet anything unless it crosses above 5971.

Today is the last trading day of the week. First trading support will be at 5890. If it breaks and sustain below 5890 then you can expect same thing happening as of yesterday but in reverse direction. This market may not give clear direction till up-coming RBI monetary policy review.

VIX has seen a dip of almost 10% in single trading session due to massive volatility. Market will try to watch up-coming advance tax numbers too.

Strategy for Nifty March future – It is looking like Nifty March future is still to gain little more but every higher level will face stiff resistance. One can trade long if it manages to sustain tall above 5960. Further cross can give 5990. In the downside if it starts trading in the range of 5910-5900 then it will be first sign of weakness. It will be decisive if it breaks 5900 levels. Note that our market is trying to sustain only because global markets are strong enough to their life time high.  

S&P 500 – I said to watch for US SPX VIX for the range of 12.50-12.60. Well, it has entered in that zone now and S&P 500 is just few points away from its life time high closing. Is there any end for US market on higher side? I am just sensing that these must be the major top but when will it change direction? Now, only GOD knows. Looking on charting formation it is showing for resistance at 1565-1570 and must fail before 1577.

Regards,

Praveen Kumar