22 March 2013: Nifty Elliott wave analysis: Nifty has broken support of 5563 also and looking to move towards my most said figure of 5548. The ghost of euro zone will give more jerks to the global market.

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

For 22 March 2013: -

On 21 March 2013, FII bought INR 368.31 crs and DII sold INR 30.08 crs.

I was expecting a recovery. That came yesterday and washed out on very same day to break even 5650 levels. This was the recovery you could have expected. Today morning, hardly any market is positive in the globe. There are fresh concerns over Cyprus banking system.

I like to add my views over struggling euro zone situation. Firstly, I just cannot understand what kind of union is this? They become the name of trouble for each other. Policy makers should rethink over their purpose of making this union. Every country is looking towards bailout fund like they are playing some hide-seek game. What is happening in Cyprus is like strong members of euro zone is blackmailing. Either you accept tax levy on deposit or whole your bank account will be washed out. Cypriots are supposed to pay for whole fault (or ambition)?

Situation is worse than Greece crisis.

About the Indian market, it is looking like we have some great trade share with Cyprus. One negative news and Indian market is reacting more than any other European nation. This is showing weak undertone of the market.

Being a technician, I can give supports but all supports are supposed to break. So, it is better to accept the trend and it is down. I have just few important figures to discuss. One support is at 5640 (given two days back) and next is 5615 which is 200 DMA.

Strategy for Nifty March future – I deal with long trade in first half and short trade in second half yesterday. This is what I can do max on long side. Technical charts are suggesting that we will see more falls today also. I have already quoted for Nifty spot target towards 5548 for March month and we are moving towards those. Use some intraday rise to short this market. Now we may not see easy cross of 5700 marks while on the downside we may have 100 points more to fall.

S&P 500 – I have already said yesterday that fall is coming. Believe me, it has just started. In coming few days you will experience many many big things. I do not know the reasons; in fact I never break my head to find out reasons as it will come on its own time. I still have to wait for 1535 as important support to break. They are not giving up but they will have to give up. Once it breaks 1535, trend will change the table. I was reading some articles last night; someone said Mr. Bernanke has taken more from depositors. Note that bank depositors are easiest target for any tax and just imagine the amount.  

Regards,

Praveen Kumar