15 October 2013: Nifty Elliott wave analysis: Above 6120, it can try to move in the range of 6180-6200 levels. Possibility of new all-time high is growing on refusal of any correction!!!

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

For 15 October 2013: -

On 14 October 2013, FII Bought INR 730.29 crs and DII Sold INR 641.20 crs

Nifty was almost remains in the range of 6100 to 6120. Honestly, it was never looking for profit taking the way I was expecting near 6120. It just came as pause and looking to move higher. If it is not coming from 6120 then it may try to advance in the next threshold zone of 6180 to 6200.

We got CPI data and Reliance result aftermarket hours. CPI data was disappointing but Reliance result neutralized the pain. Above all, US market revives well last night on hope of deal in US parliament. Still, there is no concrete information. We cannot know the exact situation. I need to consider that it has extended more than needed. Something should come by this week only.

Quarterly earnings are still on better side. So far, there is no big disappointment. Technical charts are suggesting that it can extend more if it manages to sustain above 6120. Global market is giving a hint for gap up today. If it comes near to 6200 then nothing would be left for traders to deal for intraday. This rise is extending from 5700 levels. One must remember that any great break above 6200 will give us 6232 too which will turn out to be levels for threshold for new all-time high.

Technical charts are still looking better than Indian economy data. I must say that pullbacks are not going to be more concerning. Sooner or later, it is going to hit a fresh all-time high. If not this month then next month but it will come.

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

Strategy for Nifty October future – NIFTY future is going to see another wild gap up after sharp recovery in US market last night. If it opens at 6200+ then there will be nothing great for traders. Looking on SGX Nifty, it is looking to open near 6200 levels only. I still need to see if Nifty can see some price correction from higher levels near 6200. If not then we can see more rise to reach towards all-time high. Today’s trading will be important. If it refuse to correct today then we can see the hopes growing to new all-time high.  

S&P 500 (USA) – I said for a possible dip if it goes below 1692. It has recovered just before 1692 by saving it and finally ended at 1710. Is it giving some kind of hint for new all-time high? I strongly believe that if some solution comes over US shut down then another newer high can be a reality. Strong technical support will be just at 1692. As long as it is staying above 1692, we can hope for extension of rise. It is a hope driven rise and so this hope must come true. Market would not be happy if it deadlock continues for weekend too.

Regards,

Praveen Kumar