30 May 2013: Nifty Elliott wave analysis: A dull opening will get a follow up of volatility. Technical resistances are at 6130 and 6150. Break below 6050 will thrash the market sentiment.

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

For 30 May 2013: -

On 29 May 2013, FII bought INR 643.81 crs and DII sold INR 308.12 crs.

It has not done anything big yesterday. It was volatile but range was narrow. We have seen fear in US and European markets. Even Asian markets are trading weaker. So far, Indian market has not seen that kind of weakness. Perhaps, traders want this expiry to pass.

We got two crucial results yesterday after market hours. Tata Motors presented a strongly quarterly earning while ONGC has disappointed a lot. DLF and M&M will present its numbers today.

Technical charts are almost remains same. On higher side we have two important resistances, one is at 6130 and other is at 6150 levels. In the downside 6050 has acted as a based in past three trading sessions. Technical charts are suggesting for reversal in momentum if it breaks 6050 levels.

There is another important factor which can spoil market mood. Indian rupee has seen constant depreciation against USD. So far, there were no big impact but it cannot ignore for long. Any further weakness must hit the market sentiment. Market might be speculative before GDP numbers too.

We have so many reasons to expect an extreme volatile day.

Strategy for Nifty May future – SGX Nifty May future is at 6085 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 6045-6040 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 – This dip was well suggested on charts. S&P 500 is taking support at 20 days exponential moving average. I believe that we should focus on 1633 first. We need to note that 20 EMA is now at 1637. It has just tested and bounced. Let us see what is going to happen tonight. I say, let it break 1633. Once it breaks 1633 then we have reasons to believe for 1575 as downside dip.

Regards,

Praveen Kumar