10 October 2013: Nifty Elliott wave analysis: Nifty should extend its gain towards 6100 levels too. Now focus will shift on upcoming quarterly numbers. Technical support will be in the zone of 5980 to 5960. Add long on possible dip.

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

For 10 October 2013: -

On 09 October 2013, FII Bought INR 326.58 crs and DII Sold INR 97.10 crs

It is very rare to see the Indian market has shown better strength than US in any 1-2 week time frame. US have their own problem. Indian trade deficit data lifted the sentiment and gave a very strong wanted and expected rebound. Who were expecting this kind of data? Yes, we were. It is not a magical data; it is just a base effect. Even after so many round of downgrade in past few months, I strongly believe that fundamental of economy is near to worse. Another fact is that we are not going to revive sooner. It will take 4 to 6 quarters at least. Many years back, I said that near to 9-10% GDP, Indian might now handle it.

Now, I am sensing that near to 4%, we might not go down as bad as people fear. Remember, invest is a relative opportunity. I am buying in a bad time on the expectation of good time. You cannot find anything absolutely defined about good time and bad time of economy.

I am at least happy to see one positive close in USA. We might see a pullback corrective rally which has started yesterday.

Technical charts are suggesting that we should move towards 6100 now. Charts are on breakout. It is suggesting for technical support to emerge at 5980 to 5960 levels. I would not mind even small profit taking as market will throw out weak bulls.

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

Strategy for Nifty October future – NIFTY future has already seen massive short covering yesterday in second half, especially in last hour of trades. We may expect a flat opening with trading support at 6000 levels. There are good chances for Nifty future to move higher even from current levels. We may see soft opening but it can try to pick up momentum again. It requires a fresh intraday judgment to conclude about buy levels.  

S&P 500 (USA) – I have quoted about two technical supports, one at 1642 and next at 1624. S&P 500 rebounded from 1646. Now this is a good technical formation for a corrective upward rally. You can name it as mini rally. Problem is that once it has broken 1670, the main trend has changed for short term. It should take a rise towards 1670 to 1680 zone. Now suppose, if there will be no solution over shut down when S&P would be near to 1670-1680 then we will again see a dip. This time it will come to hit 1624,

Regards,

Praveen Kumar