Monday, 26 August 2013

26 August 2013: Nifty Elliott wave analysis: Nifty should extend towards 5500-5505 levels. It may extend towards 5600 if manages to sustain above critical resistances. Metal, Pharma, technology and auto stocks will perform this week too.

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



For 26 August 2013: -
On 23 August 2013, FII Sold INR 148.57 crs and DII Bought INR 755.87 crs
We got a strong follow up of recovery. Nifty hit a low at 5254 and then recovering. So far, it is almost 200 pointes of recovery from lower levels. Technical recovery is expected to continue. I was optimistic for recovery as metal stocks were showing strength in the last leg of fall. If you observe then you can see that metal stocks are giving great recovery.
We can expect more strength in metal and auto stocks this week of trades too. I am still not feeling to be very optimistic from banking stocks. At the best also, banking stocks will be laggard of any further recovery on index.
Technical charts are optimistic but cautious for today also. I am expecting a test of 5500 levels. Challenges will come after that. Suppose if it manage to stand above 5500-5505 for 10-15 minutes then we can expect this rise to continue for 5550 to 5600. One most note that we have derivative expiry this week.  
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 flat with a gain of 12 points right now. Asian market is also looking stable. All eyes should be on 5516 which is still little too far. As of now there should be an attempt towards 5516. Further move will depend on ‘make or break’. A supportive global cues will be more helpful but those may not same as of morning minutes.

S&P 500 – It exactly came at 1660 and looking to break higher. Rise will have no great room from here. It is just a pullback. Break above 1660 will a move towards 1675-1680 ranges. It seems that early this week will belong to bulls but later may be dominated by bears. As of now charts are saying for a move towards 1680 and a failure of higher break will result fall.

Regards,
Praveen Kumar



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