05 July 2013: Nifty Elliott wave analysis: Nifty closed above 200 DMA again. Now the time has come to take another attempt towards 5900 marks. Key intraday support will be at 5800 levels.

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

For 05 July 2013: -

On 04 July 2013, FII bought INR 164.56 crs and DII sold INR 76.21 crs.

Indian market refuses to give up much in pullback. It is looking like stability in market is forcing FIIs to turn positive. It must be noted that massive selling in banking and metal stocks continues even yesterday. As indices are performing so at some point these has to perform. Bank Nifty is at a place where it was at 5700 of Nifty.

European market has seen massive rise last night after Mario Draghi’s comments. (He said that he can give further rate cut. This is more than what you can even dream specially after a hint for roll back of QE in USA) Asian market is already opening higher after sharp rise in Europe. Even US market futures are trading higher. Dow Jones may give a successful cross of crucial 15100 marks tonight. Global market is looking rosy for fresh wave of rise.  

I have already suggested buying in dip. Technical charts are suggesting for a move towards 5900 marks I am seeing a good rise once Nifty spot crosses 5906. Once it crosses 5906 then bulls will take full charge for a move towards 6100-6200 levels. Technical support stand at 5800 levels now. Note that 200 DMA is at 5830 levels.

Now the time has come for banks and metal to recover from its recent lows which we have seen yesterday. At some point, traders have to short Banks and Metal.

Strategy for Nifty July future – SGX JULY NIFTY is now higher by 38 points. I have used the dip to buy in past two days. Now we will see opening above 5875 levels. Litmus test will emerge at 5906 levels. If it stands tall above 5906 then prepare to see a massive rally. I am already long and prepare to hold long. Let us see if short covering hit anytime now. Are you scared about 5900-5906? Play some gamble in my way and bet on cross.

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 already said that we have great chance of hitting levels near to 1688 (which is life time high), once recovery starts from 1560. We will see a cross of 1624-1630 by tonight and then US market will lock its belt for 4-5% rise. I see chances for another life time high in USA by July month.  

Regards,

Praveen Kumar