01 July 2013: Nifty Elliott wave analysis: Nifty need to cross and sustain above 5867 to achieve 6000 again on higher side. Expect base at 5770-5750 levels. I bought in fall and will add more in dip, if comes any.

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

For 01 July 2013: -

On 28 June 2013, FII bought INR 1124.31 crs and DII sold INR 581.28 crs.

So finally FII has bought something in Indian market and that is turning late buying. Nifty has moved higher by 276 points and almost 5% from its recent low of 5566 levels. India VIX has corrected from the levels of 22+ and now coming near to 17. India Rupee came at 59.53 against US dollar. So far, all market affecting factors has turned positive. With two days of rise, Indian market comes parallel with global indices.

Technical charts are suggesting for further up move. There is a crucial range of 5867-5875. Suppose, if Nifty stands above the given range for 5- 10 minutes then we can expect rise towards 5930-5940 levels. In the down side we have crucial support in the range of 5770-5750 levels. Although I believe that it will be difficult to break either 5800 marks too.

We got fuel price hike on Friday after market hours and it was very much expected after sharp depreciation in Indian rupee. It is still a challenge to buy mid cap and small cap stocks but I do expect some rise. I never prefer to buy such stock. Recent fall has explained why I avoid such stocks.

Strategy for Nifty July future – SGX JULY NIFTY is up by 12 points now and trading at 5840 levels. All this is coming even after some dip in US market. Indian market started its rise very late compare to US indices. Technical charts are suggesting for rise towards 5870-5880. Cross over will give us further 1% rise. This rise is not going to end in an easy way. One must note that this market has factored out so many negative factor.

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”.

It took a pause near 1620-1624 resistance levels. Note that S&P 500 was rising from 1560 so some price correction deserved. Technical charts are suggesting for a fresh wave of buying above 1620 levels. My view is that we should buy every dip and expect higher cut in early this week. Technical support is at 1600 and then at 1594 only. It is not likely to break lower.

Regards,

Praveen Kumar