04 October 2013: Nifty Elliott wave analysis: Logically, 5840 should give us trading support now. As long as it holds 5840 it may try to reach 6000 levels too. We should use dip to buy.

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

For 04 October 2013: -

On 03 October 2013, FII Bought INR 997.21 crs and DII Sold INR 493.00 crs

Yesterday’s rally must have shocked bears as it has shocked bulls like me also. It has saved 5700 and now closed above 5900. This happened in just two trading sessions. This is too wild to deal. I was expecting some trading resistance at 5840.It has crossed 5840 and then invited wild short covering. Adding more we got strong FII buy figures.

Best part of yesterday’s rally was that it came with negative global cues. Generally, I take this as sign of strength. We got another hard sell off in US market last night as they are not reaching on any solution of shutdown. This trouble is extending much beyond my expectation.

Technical charts are suggesting that we will get trading support at 5840 to 5800 from now onwards. If this remains applicable then we can expect trading levels of 6000 first. Although I expect Nifty going near or above 6100 too.

Above all, firstly I want solution of US shut down. This problem should not extend more. If it goes over weekend too then world may chance next week. When politics affects economy then it can never be for good reasons.

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

Strategy for Nifty October future – SGX Nifty is showing 40 points down right now. It is itself a great quote after US market sell-off. Technical charts are showing for support at 5910-5900. It is going to see gap down. Next task is to fill up that gap down. Nothing more is predictable than this as of now. I still feel for positive biasing.

S&P 500 – We got another dot pause @ 1670 and then some rebound to close near 1679. Definitely, I feared this. We should be more fearful if US shutdown goes over weekend too.  I always believe that technical charts lesser value on this kind of events. If it breaks 1670 then whole world will go under shock next week. Let us see if it can saved 1670 for today also or not. We need a bounce above 1692.

Regards,

Praveen Kumar