30 August 2013: Nifty Elliott wave analysis: Two big days and now be cautious at higher levels. I am still expecting recovery to continue but not with same pace. Technical support is at 5340 levels. Cross above 5430 will be better confirmation for intraday.

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

For 30 August 2013: -

On 29 August 2013, FII Sold INR 248.18 crs and DII Sold INR 75.80 crs

India VIX slipped from 36 and came at 29 in a matter of two trading sessions. We saw great improvement in India rupee with just one decision. Why that decision was not taken earlier when it was suggested from all side. It seems that RBI willingly allow rupee to float in flood. I always give importance of follow up on trend reversal. Let us see if rupee can give some more positive today although it is not very likely. I still feel that decision was too late and too little.

So far, recovery follow the roadmap exactly in the same way as suggested. We got derivative expiry above 5400 levels. For today, 5430 will act as threshold. Cross above 5430 should give anther rise towards 5500-5530 levels. I must say that trend traversal can be confirmed only above 5530 levels. So far, it is just pullback.

It is last trading day for the month and first trading day of new series. Typically, Indian market has some bad history for September month but I still feel some better performance for the coming month. It is notable that market slipped from past two months.

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

Strategy for Nifty September future – SGX Nifty is trading with a gain of 30 points right now. I am expecting some premium – discount fluctuation on September future. Trading support can emerge only at 5350-5340 levels. We need to focus on crossover of 5430. Let us see first hour low which will be very important.

S&P 500 – I said that I have no trade on US indices. It is just moving on unpredictable 20 points ranges. Yesterday too, it crosses 1642 but failed to impress and slipped in last hour of trade. It may have Seria reasons or anything else but charts are still saying for wait and watch. Remember, September month does not have good history for stock price. So, support in the range of 1624 to 1618. On higher side need a strong cross above 1642-1647 to conclude anything. It is pausing structure.

Regards,

Praveen Kumar