08 August 2013: Nifty Elliott wave analysis: Today is 13th day from the top of 6093 and 10% away from the top. Nifty still needs to stand above 5580 to give first sign of recovery. It is tough but not impossible.

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

For 08 August 2013: -

On 07 August 2013, FII Sold INR 350.92 crs and DII Bought INR 261.73 crs

We can only conclude that intensity of fall has reduced but it is still a weak structure. I have stated a condition of recovery that it needs to give a gap up and that need to sustain for whole day. After such brutal sell off, it is tough to expect but condition is really need to be so tough after such a brutal sell off. Fibonacci curve is suggesting me for support at 5480 to 5460 area.

It can never be a good idea to mention so many supports. Real support should never be tested. I am assuming that 5460-5450 will be the support which may not be tested without any great pullback. As we got death crossover so I am not expecting any good recovery which can take this market above 5800-5820 levels. It is important to note that even quarterly numbers are worse since year 1999.

Technical charts are still advising caution for anything long. I am expecting a possible reversal today based on Fibonacci time retrenchment. Today is 13^th day from the top of 6093 and 10% away from the top.

Visit again to read my intraday updates as I can update about those only during market hours.

Strategy for Nifty July future – SGX AUGUST NIFTY is trading with 15 points gain. I cannot conclude anything yet based on SGX NIFTY. It is still a tougher bet to say for recovery. Lower low support should emerge at 5515. Break below 5515 will give further 1% fall. On higher side nothing is safer unless it stand above 5605. Once it sustains above 5605 for 10-15 minutes then we can say that it is ready for 1-2-3 days of rebound.

S&P 500 – Why I like US indices so much? S&P 500 has support at 1680 but it has rebounded from 1684 itself. No corrections get stretch longer than expected. It is still expected to be weak rebound. I am expecting that upcoming rebound can give better opportunity to bears only. One can use rise to short and keep stop loss above 1713. Reasons are not very clear but those will come later.

Regards,

Praveen Kumar