03 June 2013: Nifty Elliott wave analysis: For today’s trading we can expect trading support at 5930 even after a gap down. All global market is trading in red due to fresh fear of rollback of QE in USA.

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

For 03 June 2013: -

On 31 May 2013, FII sold INR 504.02 crs and DII bought INR 203.11 crs.

FII has net sell figures for two consecutive Fridays. They sold for 24^th May and they sold for 31^st May too. It begins the June month series in the worse possible way. It was nearly 2% dip on Friday and there were many stocks which went on the lower levels of more than a month. Examples are stocks like Tata Steel, SAIL etc.

We need to accept that except majority of Indian companies has disappointed with its quarterly earnings. A trimming GDP figure was also reflecting the same things. We have seen impact on market after data hours. Market dynamics shows that we are in post-result sell off mode.             It is not reflecting on index but there are many stocks which has given post-result selling. Stocks like HUL were expectation.   

Technical charts were showing for support at 6050 but it has broken brutally to slip further 75 points in a shock. We need to note that 6130 has acted as stiff resistance on higher side which was expected. It came on derivative expiry day and that’s in final hour of trade.

Now, I am getting next technical support at 5930. If we start getting close below 5930 constantly then we can expect a dip towards 5700-5600 levels. Well, for today I will look curiously towards 5930. Take a note that Infosys will see 4-5% rise irrespective of market condition as Mr. N.R. Narayanamurthy came back in Infosys.

Strategy for Nifty June future – SGX Nifty June future is at 5975, down by 14-15 points. Indian market were already sensing this fall on Friday. One must note that we got more than 2% selling on Friday so be cautious on lower side. I am not ready to add short at lower levels as I am already holding shorts from higher levels. Technical resistance will be at 6030-6050 and support at 5945-5930 levels. Infosys may come to rescue index.

S&P 500 – It has finally broken 1633 support marks and closed below this one. Now we just need to see a follow up buying. It is likely to give one soft bounce before final fall but it should be noted that S&P 500 closed in red for two consecutive weeks and that happened first time in past six months. My charts are suggesting me that almost all global indices hit a top (may be a short to long term top) in the month of May itself. I was already assuming for May month sell off. I am can say that 80% chances are that S&P 500 has made a top for the year 2013.  

Regards,

Praveen Kumar