31 May 2013: Nifty Elliott wave analysis: Anything above 6130 can result the test of 6150 first and then 6190. Technical support will now extend at 6080 levels. All eyes will be on GDP data today.

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

For 31 May 2013: -

On 30 May 2013, FII bought INR 787.47 crs and DII sold INR 315.86 crs.

It was one of the wildest derivative months which closed on strong note. We saw new multi-year high and then a quick retrenchment towards 5930. Now we are again 200 points higher from those levels in the matter of just few trading sessions. For Indian market liquidity is still flowing in its own pace.

M&M has presented a strong set of numbers which DLF disappointed. We have already seen rewarding rise on M&M. Now for today, market will wait for its GDP data which is scheduled to come today. An expectation for GDP is for a range of 4.80% to 5.00%.

Technical charts are suggesting that Nifty has formed a base at 6050 levels and technical support will emerge at 6080 also. On higher side, it is manage to spend time above 6130 levels with volume then we can expect another 50-70 points of rise.

Alter sense suggests that if it breaks 6080 in the down side then it can move near to 6050 too. Any break below 6050 will be decisive. We need to assume that volatility will remain in this market. Nifty may fluctuate big before and after GDP data. Global markets are firm to strong right now.

Strategy for Nifty June future – SGX Nifty June future is at 6142 right now. It is indicating for 10-15 points’ higher start. Immediate technical resistance will be at 6150. Volume cross of 6150 will add 30-40-50 points more on higher side. Exact reachable levels can be 6186-6190. As long as it is staying above 6080, we cannot expect immediate weakness. It may swing in both directions depending on the outcome of GDP data.  

S&P 500 – Now, from past three trading days, US indices are closing well of its intraday high. This is a pattern changing but not yet giving good sign of any profit taking. I am still considering that as long as S&P 500 is above 1633 we have no room to think for correction. Stiff technical resistance will be at 1675 and 1688. If it goes below 1633 then we can hope for 1600-1575 as first meaningful correction of 2013.

Regards,

Praveen Kumar