17 September 2013: Nifty Elliott wave analysis: Once again one should watch for follow up of trades. Technical support is at 5800 and it is decisive levels. Highlight is on Ben Barnanke again !!!

You must read previous articles and watch the given chart carefully to understand this article completely. (Due to some problem, I have posted my article very late today). 

For 17 September 2013: -

On 16 September 2013, FII Bought INR 282.87 crs and DII Sold INR 425.17 crs

Very few people would have expected the fall which came yesterday from higher levels. We were one such. Indian indices have surely underperformed the global indices. This is concerning as Indian market has brutal history whenever it under performed. I have already said that INR is going to see fresh weakness now.

It exactly stopped just before 5960 levels. So far, it is giving me shape for technical correction irrespective of news flow. Market is also looking nervous after WPI data. Now all eyes are on RBI’s next monetary policy review. Indian economy is in battle mode and destination cannot be changed. It is going to lose the battle. I am not expecting any improvement in economy’s fundamental.

It seems that 5957 should remain a short term top. We have crucial support at 5800 levels. Now, suppose if it sustain below 5800 for some time then we can expect a dip towards 5700 levels. From past five trading sessions it is trading close to 200 DMA only. It has a difference this time. Banking index is looking stable.

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 flat at 5860 levels. Technical charts are suggesting that it can try to take technical support in the range of 5815-5800 levels. I am still short on this market from higher levels. Trading resistance will emerge at 5910 levels. Still, short term resistance should be at and above 5980 levels.

S&P 500 – I said that, “above 1690, I am forced to accept for the levels near 1705-1710”. It came in the same range and then hit a profit taking. I still cannot say with good confidence that good profit taking is coming ahead. Technical charts are suggesting that S&P 500 should not hit new all-time high. Even if it comes then also it should not extend much. Yesterday’s close came in line with my expectation. Let us see how it is going to shape up today. Hoping for break below 1690.

Regards,

Praveen Kumar