Wednesday, 14 August 2013

14 August 2013: Nifty Elliott wave analysis: Charts are still advocating for further extension of recovery as long as Nifty holds 5640-5630 levels. Keep an eye on WPI data, expecting 5.10%,

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



For 14 August 2013: -
On 13 August 2013, FII Bought INR 227.08 crs and DII Bought INR 115.29 crs
We got 2.80% rebound on Bank Nifty which was really very rare kind of bounce. After market hours, Tata Steel has given positive shock with its quarterly numbers. I hold half of my long. There are less bad for today’s trading but NSEL fresh development can hurt sentiment again.
On other hand, market will get July WPI number today which will come during market hours only. It is expected to come at 5.10% due to higher food inflation. One should expect some reaction in those hours.
Technical charts suggesting for support at 5640 levels now. As long as it is maintains 5640 levels we can expect some more extension in rise. I have earlier discussed about death crossover and that market was at 5820. I am considering that this recovery will die before 5820 levels. Let us see today’s trading.
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 will fall of 20 points which is acceptable after almost 200 points of recovery on Nifty. It is likely to open near 5690. So far, charts are saying for buy in dip assuming for trading support at 5650-5640 levels. On higher side we can expect 5750+ levels. Litmus test will emerge only at 5800+ levels. Expect heavy premium fluctuation today.

S&P 500 – As long as it is saving 1680-1675 range, it is likely to give rebound. It has just saved 1680 yesterday and moved towards 1696+ levels. We are getting negative divergence on many momentum indicators but US market has history of violating those. Technically it is looking for a dead day to positive day with a challenge at 1700 and 1710.
Regards,

Praveen Kumar

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