24 October 2013: Nifty Elliott wave analysis: You cannot ignore the important of 6240 before life time high. Will it hit life time high first or will it go back to 6000? Negative divergence is giving 6000.

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

For 24 October 2013: -

On 23 October 2013, FII Bought INR 644.80 crs and DII Sold INR 545.54 crs

In was impact of negative divergence that we saw a dip yesterday. We saw some optimistic recovery in last hours of trades. It is giving a hint that bears are silently entering market from back door. I am still saying that 6200 will throw confusion only. I can think for a fresh life time high only if it surpasses 6240 successfully. There is no doubt that optimism will be at highest point right now as it happen every time. You ask 100 people about the possibility of new all-time high. You will get 99 positive answers.

((( Technical conditions has arises in a manner that first we need to focus on 6 2 4 0 . )))

Chinese equities hit two-week lows on Wednesday after reports emerged that top Chinese lenders, including Industrial and Commercial Bank of China (ICBC), wrote off about $3.7 billion in bad debt for the first six months of the year.

I said earlier this week, “In short, Monday, Tuesday or Wednesday, a short term top is coming. Now, it can be at 6240 or 6300 or even may be nearer to new all-time high at 6360. I would rather be very happy to see 6360. Note that I am not claiming for new all-time high, it is just my excited optimistic thought of a hardcore bull of past few weeks.” Assume, telecom stocks may see fall from today.

Remember, I have already quoted this on Monday that Japanese market may see dip fall. We saw fall of 280 points yesterday and losing 125 points today too. US blue-chip S&P 500 is falling from my quoted levels of 1760. So, we cannot say that globe is favoring for new all-time high.

For today’s trading also, use every rise to short with stop loss at 6240. I am not writing anything more in order to give whole important to 6240.  

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

Strategy for Nifty October future – NIFTY future may open on another flat opening. I hate this kind of movement. It is making impact of negative divergence. It will face resistance at 6260-6240 levels. I will not surprise if Nifty can go down as much as 6000. Do not even think about new life time high unless we go above 6240. Yes, 101% if Nifty future crosses 6240-6260 then I will also add long.

S&P 500 (USA) – Once it is making top at 1760 then we should keep view for price correction as long as it is staying below 1760. I am still retaining my views and my first possible target can be 1720-1700 zones. I still have no reasons for the upcoming fall but technical set up are suggesting that there can be something going wrong. Well, I will not break my head on reasons. It is a sell!!!

Regards,

Praveen Kumar