05 November 2013: Nifty Elliott wave analysis: It will be another day to talk about the possibility of new all-time high on Nifty. Sensex at new all-time time high but only 2% give new all-time high.

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

For 05 November 2013: -

On 03 November 2013, FII Bought INR 3.98 crs and DII Sold INR 0.28 crs

Market is inching towards all-time high slowly. As long as performance continues on mid cap and small cap indices we can expect extension of the rally. When I am saying extension of rally then also I must add words of caution on higher levels. Remember that Indian market has slipped from this kind of higher range even in 2011.

Presently, we have no such alarming global threat yet and technical charts are justifying the rise. In fact, it is showing for more rises and a possible crossover to make a new all-time high. It is true that fundamentals are not as good as stock price. Inverse H&S pattern is giving hint for good rise.  

I am expecting new all-time high as it is a demanding figure. US market gave good rise and Asian market is also on rise. Good news continues as crude oil is trading at lowest levels of past four months. I am concerned on VIX front. I said this earlier too that 18 is a decisive levels for VIX. It is 50-50 possibility for next move. Either we will see 23 or we will see 14.

Technical support for the day is at 6280-6260. On higher side, it can try to come near 6360-6370 levels.  Visit again to read my intraday updates as I can update about those only during market hours.

Strategy for Nifty November future – NIFTY future is likely to open flat. 6300 levels will act as good trading support. Note that at this kind of levels, no technical will give sell. It is overbought but rising with consolidation. On higher side, I am expecting 6400+ move anytime. I am advising caution from long but trade long only.

S&P 500 (USA) – It is fair to say that S&P does not want to fall and hence we need to conclude for a possibility of 1780-1800 levels. As long as 1750 holds, one must expect 1780-1800 levels. We may expect levels nearer to 1800. I must add, I still retain my strong view on “Caution”. If it forms a top then it will be alarming and trapping top.

So far, things are not looking to change must so market is likely to advance but be cautious.

Regards,

Praveen Kumar