28 October 2013: Nifty Elliott wave analysis: All focus will go on RBI and FED now. Technical support for Nifty is at 6120. Expect a dull day and speculative move on RBI policy today.
You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 28
October 2013: -
On 25 October
2013, FII Bought INR 626.99 crs and DII Sold INR 497.55 crs
We are on
the last week of October and on expiry week too. What this month has done so
far? So far, it is up by 7% in this month series. FIIs has pushed INR 12923 crs
and DII sold INR 9229 crs. Then, we have a negative close last week. Majority of
FII money come at higher end.
No one can
short of exit from the market exactly at top. There are some ranges which are
working as topping range. I still believe that 6200-6240-6250 is going to be
such range. Sell signal will intensity once we take out 6120-6094 ranges. In my
view, Option data has given a hint that expiry can be in the zone of 6000-6050
levels irrespective of Global cues. Market is likely to watch for upcoming
monetary policy by RBI. Chances are less for good news coming from policy. We will
see the shadow of speculation today.
Right now
I can see only green in global markets and we can also expect some influenced
start. Then, we will see resistance at 6200 levels. It is likely to be a dull
session. There are few technology stocks or almost all tech pack which can
emerge to give support to the market. Rate sensitive stocks are going to see
some volatility.
In all, I prefer
to focus at 6120 levels. If it breaks 6120 then we can immediately expect 6094
levels. We can expect panic profit taking if it breaks 6094 levels. It is
challenging but not impossible. Activity may be less for the day.
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 likely
to open at 6160+ levels as suggesting by SGX Nifty future. Breakdown point for
Nifty October future is at 6120 only. It may try to retrace after higher
opening. Technical resistance is at 6200 levels. Only a cross above 6200 will
again push it towards 6240-6260 levels. I will not surprise to see a dull day
today.
S&P
500
(USA) – It is back to hit 1760. This
kind of closing at the high point of the day is inviting bulls. Cross above
1760 can push S&P towards 1780-1800. I am unable to read about the reason
of fall but I can read the fall. I am giving a strongest possible warning – RSI
and MACD divergence is giving sell after sell. This divergence is running from
1690. Do not believe the momentum blindly.
This kind
of momentum can see ugly stop but pictures are not clear for those stopping
point. Logically, it should be at 1760 but we may see advance. Looking like
1780 or 1800 will play a role.
Regards,
Praveen
Kumar
Join the conversation