22 April 2013: Nifty Elliott wave analysis: Nifty is on 8th day from its recent bottom and gained over 300 points to match rest of the globe. Pullback may end very soon but strong support at 5750-5725 now.
You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 22
April 2013: -
On 18 April
2013, FII bought INR 940.07 crs and DII sold INR 405.22 crs.
FII has
started their buying again after sign for trading cut and trimming trade
deficit data. At this point of time global market is again on gain backed by
weaker yen. Japanese market moving higher at its 5 year’s high.
Well,
budget session is beginning from today. Market is hoping for land acquisition bill
to be passed. Expect massive sought on JPC report. I am scared that member of
parliaments may not have time to discuss crucial bills which are need for
economy.
India VIX
has slipped over 6% on last trading session. It is looking that it will have
support at 14.50 levels which should not be broken. Indian market has already
retraced by 50% against the fall from 6111 to 5477. So, we are at mid-point of
this fall. 61.80% retracement will give us almost 5870 levels which is next
logical resistance.
Nifty has
recovered 50% of its fall in just few trading days. I am expecting resistance
in moving ahead but those are speculative views. I prefer to wait for the sign
of tiredness and then for weakness. We will see crucial supports emerging at
5750 to 5725 zone which was resistance earlier. I am sure that rise will get
sold very sooner by this week itself but we have derivative expiry too for this
month of trades.
Politics can
be capable to give shocking movement anytime.
Strategy
for Nifty April future – It has surpassed the
resistance of 5730 and came very close to 5800 levels. We may expect a positive
opening but it will have a bigger threat to get sold at higher levels by today
itself. Trading resistance for Nifty April month future is at 5830 levels. It will
be better idea to switch towards May month series and prefer to cover option
strategy of April month series. I feel that today’s high will remain the top
for April series till derivative expiry.
S&P
500
– It has traded below 1543 but seen immediate bounce. It was just typical one
bull’s attempt. Weekly chart is hinting me for the beginning for selling. I am
getting resistance at 1560-1565 itself. If I am right then US market will close
on day’s low today. What we need is one close below 1543 and then we can expect
a move towards 1510-1500 levels.
Regards,
Praveen
Kumar
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