09 May 2013: Nifty Elliott wave analysis: It is still showing upside direction as long as it is staying above 6024-6020 support. On higher side it is looking to move towards 6120 levels. Correction denied?

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

For 09 May 2013: -

On 08 May 2013, FII bought INR 976.99 crs and DII sold INR 669.08 crs.

It does not matter how but the fact is that rise continues for Indian market as well as global market. Indian market moved higher very sharply in last 15 minutes of trades. Somehow, most part of the world see rise in last part of the session.

I can say that ‘price correction’ is an integral part of market dynamics but current rise is stretching too much without correction. If market starts moving in this way then it should be termed as ‘euphoric’ market which always takes only positive cues. It seems that rise will continue with ‘negative divergence’ in hourly charts. Yesterday, CNX NIFTY JUNIOR and NIFTY MID CAP 50 have closed lower which Nifty was going higher. This is showing a broader under performance.

Broader under performance is starting but this factor can also take time. On other hand, parliament adjourned before schedule and left all crucial bills away from table. Even that was not enough to tamper the sentiment. This market is ignoring all bad news and only accepting good news right now.

I was expecting May month sell off but there is no such beginning now. I can say that bigger under performance of Indian market will continue on long term chart but it will not be completely isolated from global market.

Strategy for Nifty May future – It has a technical support at 6024-6020 levels. Yesterday also, it has tested only 6025 and then bounced. It is not going to make speculative top or resistance. On 29^th January 2013, it has formed a top at 6120 which should be under test now. There are no signs of pause and rise may continue for more. Rise should continue as long as it is forming higher lows and higher high.

S&P 500 – I was expecting resistance, correction and topping formations. Well, it goes in reverse way and just moving higher day by day. Over bought rise is most dangerous rise. I can spot support which is now at 1620-1616 levels. At a new life time high, resistance cannot be defined. I know that it will end bad but I do not know when will that end come. Bulls may continue to dominate.  

Regards,

Praveen Kumar