05 September 2013: Nifty Elliott wave analysis: Mammoth GAP UP is coming after LS passes Pension Bill. Keep an eye on 5600 marks. I just liked to buy every dip rather than betting on fashionable shorting.

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

For 05 September 2013: -

On 04 September 2013, FII Bought INR 172.53 crs and DII Sold INR 222.36 crs

Indian market bounced very well after Tuesday’s panic sell off. It is extremely fragile now and that is causing this tremendous volatility. I still believe that Indian market should be bought only in any dip with courage. We are already at worse of fundamentals and things can improve a little from here before decisive takes. In hurry, Lok sabha passes Pension Bill which is good for market.

I have already quoted on Monday that INR should add strength now and USD may see vertical fall any time. Things go as the road map shown. A final impulse came yesterday to make double bottom. It is ‘Raghuram effect’. At least he is trying something meaningful which was desperate need. I agree that he need to do a lot for economy. Good part is that charts are little supportive for him. I am expecting a test @ 65 very soon, may be this week itself.

Nifty moved much before 5250 and this is a first great sign to buy. Now, on hourly charts, it has formed complete ‘inverse H&S’ pattern. Decisive break of n- line will be above 5590-5600 which is little too far but not impossible. I still believe that banking stocks has done with fall although technical sign of buying is not coming in convincing way.

Let us see it on ‘Teacher’s day’. Stock Market is my best teacher. 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 gain of 115 points and it is going to kill bears. If one is holding long positions then only one can smile with this gap up. We bought too many. Technical charts have no great relevance after this kind of gap up. I will look for the cross of 5600. For intraday one should use dip to buy which should be only pullback in nature.

S&P 500 – As indicated, it becomes make or break near 1624. I have already said not to short unless it breaks lower further. It has manages to save 1624 and bounced to make possible attempt towards1660. It is still away. I believe that the range of 1630 to 1660 is just a time pass. Unless it breaks above 1660 we cannot decide anything.

Will the Nobel peace prize winner and president of USA Mr. Barak Obama really attack Syria? No, they cannot. I have too many reasons to support my logic which I will write later on different article.

Regards,

Praveen Kumar