07 June 2013: Nifty Elliott wave analysis: Technical support for Nifty will be at 5860 levels. Break will give another round of selling. Expect resistance at 5960 to 5980 levels.

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

For 07 June 2013: -

On 06 June 2013, FII sold INR 270.47 crs and DII bought INR 298.08 crs.

This is going to be prime concern in few days. FII has sold in cash market as well as Index futures too. We got a bounce from 5869 which was nearer to the mentioned support of 5860. It has got almost 80 points intraday rebound but those cooled down from higher levels. Eventually, Nifty closed below 5930 levels again.

In between we got strong rebound in US market too. S&P 500 rebounded from 1598. We need to note that 1600 were a key support. It is likely to be another one day rebound. European market closed in big red as Super Mario said to be cautious in market. He said to be cautious and stock market listen him. This is my strong objection point. Policy makers commenting for stock market and stock market follow them.

Technical charts are still suggesting for support at 5860 in spite of H&S pattern. From past four trading sessions Nifty is moving near its n-line only which is at 5930. It will break lower but it will take its own time.

For today’s trading resistance will be at 5960-5980 levels. In the down side it will take support at 5860. You can take 5860 as break point for 50-60 points of immediate slide. I am equally repeating that trade above 5930-5933 may give some recovery again just like yesterday.

Strategy for Nifty June future – SGX Nifty is trading with a fall of 22 points, now at 5906. It is not affected by recovery in US market. Technical support will be at 5880-5875 levels which was yesterday’s low. Fresh shorting can be possible only at the break of 5875-5880. Now that key support will be only at 5860 on Nifty spot. On higher side 5970 will be only meaningful resistance. As the difference between resistance and support is wider so we can expect massive volatility.

S&P 500 – I am keeping this line as it is. “I repeat that that 80% chances are that S&P 500 has made a top for the year 2013”.

I have said for the test of 1600 which we got yesterday with a low at 1598. Take a note that S&P 500 has rebounded from nearer 50 DMA support. I was expecting a bounce but not this stronger. Well, now technical resistance will be at 1633-1638 levels. It will take time but fall will open for the test of 1575 levels. I will wait for at least one negative close to conclude for time.

Regards,

Praveen Kumar