29 May 2013: Nifty Elliott wave analysis: Nifty has resistance at 6130-6150 levels and support at 6050. Restless volatility is expected for today and tomorrow. I cannot rule out the possibility of weakness.

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

For 29 May 2013: -

On 28 May 2013, FII bought INR 711.12 crs and DII sold INR 507.82 crs.

I have highlighted the resistance at 6130 for the last trading session. Nifty hit a high at 6127 and closed at 6111. It is important to note that market was very volatile near 6100 marks. It is looking like more due to short covering before derivative expiry. Now, this market is expected to increase for today and tomorrow’s trading sessions.

US market closed on highest levels of life time on closing basis. European indices are moving towards its multi-year high. Asian indices are trading mix as Japanese market is again moving on wild note. It is important to note that Japanese indices are still on threatening levels. Any weakness below 14000 for Nikkei can put additional pressure.

In another development, PM has washed out all possibility of implementation of GST within a year. This is a sentiment dampener.  

We have some crucial result ahead today. Market will get Tata Motors, ONGC, HPCL and BPCL result today. Technical charts are suggesting that if Nifty breaks 6050 then only we can expect renewed selling in Indian market. As long as we are above 6050, we can expect volatility. I feel that Nifty will either take a pause at 6130 or at 6150.   

Strategy for Nifty May future – SGX Nifty May future is at 6098 right now. Technical support will be at 6050-6045 ranges. On higher side 6130 to 6150 will be stiff resistance levels. It is surely going to be volatile and major movement will start after 2 pm. If it breaks 6145-6140 with volume then it will again re-test 6000 marks. We should focus some directional trades only after 2 pm. First half may remain choppy to volatile in a range.

S&P 500 – It has saved 1633 and then bounced again with a gap up. I has already given sell few days back. Weekly charts are saying for, “Wait and watch if it breaks 1633”. Yesterday also it hit a high near 1675 but given up half of the intraday gain. Is it the sign of tiredness? It is too early to conclude. Keep an eye on 20 days exponential moving average which is at 1633.

Regards,

Praveen Kumar