08 May 2013: Nifty Elliott wave analysis: Cross above 6024 may give 6080 to 6120 levels. American and Japanese disease of ‘no correction’ hit Indian market too.

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

For 08 May 2013: -

On 07 May 2013, FII bought INR 655.21 crs and DII sold INR 729.17 crs.

I said yesterday that global markets are moving like ‘a problem free’ world. In fact, global markets are ignoring all bad news and accepting all good news. Firstly, life time came at USA and then even European indices go at new 52 weeks high.  DAX has again achieved its new multi-time higher levels. Japanese market is moving like there is no stop. After a massive yesterday, Japanese market is still higher today. Right now it is higher by 1%.

Above are great examples that what liquidity can do. Global markets are running on monetary easing and easy money. To a big extent, stock price moving higher on fresh hope on growth recovery. Well, data points are not giving as better signal as rise in stock price. So far, US economy data remains good and every data was good.

Nifty has closed above 6024 levels which are very important now. One can apply any technical indicator but all are giving ‘big divergence’. We do not have too many history of such development. I was expecting May month sell off but still there is no such signs as it is still making higher highs.

It is definitely looking like we are still far from an expected correction and honestly, I am wrong on my correction call. Technical charts are suggesting for 6080 and then 6120 on higher side. Right now, I will not conclude where it will stop. Let the market decide.

Just like to add, if you look at multiyear charts then you can see a big under performance compared to global indices. Indian market might try to take cues from Karnataka election result too.

Strategy for Nifty May future – It is looking like to see higher start for today also. I can say that if correction comes in global market then it will be give big damage to Indian stocks. Big question is that when will correction comes. Till now there is not even small sign yet. Technical support for Nifty May month future will be at 6020 and then at 5990 levels. Only a break below 5985 can give some correction but that is also looking too far.

S&P 500 – It got another good set of data last night and ride continues. How long can it extend like this? Weekly chart of many sectorial charts are giving sell but blue chip indices never reacted with those. Divergences after divergences are coming but still no response coming from Index. I can say that technical indicators are turning handicapped. I have no levels for today, let us go for wait and watch mode.

Regards,

Praveen Kumar