08 October 2013: Nifty Elliott wave analysis: We need to move above 5980 to bet for next leg of rise. We may come near to 5980 now and then a decisive move will start. Bears should be catalyst for rise !!!

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

For 08 October 2013: -

On 07 October 2013, FII Bought INR 494.13 crs and DII Sold INR 267.46 crs

I have quoted for support to emerge in the zone of 5840 to 5800. We saw a bottom at 5825 and many traders started to deal on short side. It took another fascinating “U” turn and close very near to green. Bears added catalyst in second half for rise.

US shut down are still my prime worry. I have said that Stock market across the globe has not seen any big impact yet. Indian market came forward to add more strength. After market hours, RBI governor gave reason to smile. We can expect a good gap up today.

I have quoted the importance of 5980 from past few days. I hope to see levels nearer to 5980 today and then we can take some decisive move. I am positive and want to be positive rather being contrarian player. Now, those who are shorting will play major role above 5980. I feel that people will rush to cover their shorts and rise can be more rapid.

One more thing, market is eyeing on upcoming quarterly numbers too. Even a small revival will give Diwali earlier than scheduled dates.

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

Strategy for Nifty October future – We have reasons to expect for the re-test of 6000 levels. Charts are showing that crossover of 6000 levels will put pressure on bears. If short covering comes above 6000 marks then one can expect the levels of 6030 levels too. We may reach as higher 6100 levels. Thing ten times if you were shorting near 5800 levels. Many traders have done thing mistake. Remember, making one mistake like this can invite series of mistakes.

S&P 500 (USA) – I said that as long as 1670 hold we can have some hopes. It is still saving and taking rebound. I tweet for buying when it was hitting day’s low yesterday. Those are still applicable. Big question is if it can cross and close above 1692 some time. US shut down still continue and that is making to worrisome. I can only say, come on, do something. How can US policy makers act like this? I have already said that it is about politics, not about economy but it can hurt economy badly. So far, charts are not wrong.

Regards,

Praveen Kumar