08 November 2013: Nifty Elliott wave analysis: 6180 just came as low for yesterday. Any break below 6180 will cause panic sell off. US indices have also cracked last night. I am repeating again, “do not buy dips immediately”.

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

For 08 November 2013: -

On 07 November 2013, FII Bought INR 479.24 crs and DII Sold INR 715.07 crs

I have mentioned a crucial support of 6180 yesterday. It has tested in last hour of trades. We got a surprise bounce too in morning minutes. This kind of index behavior used to come near this kind of top. I was also saying for some sort of global sell off. We got almost 1% dip in US market last night. Equally Japanese market Nikkei is almost testing 14000 levels.

I have already said that VIX is reflecting for rise and indicating fall in index. We just need to see if it can able to close above 21. This bounce is coming from 18 levels and may cause some big damage. Equally, there are few technical indicators which are giving sell with strong negative divergence.

One must note that we have seen some brutal sell off yesterday in mid cap stocks also which is another concerning fact. It may reflect that investors have fulfilled their appetite. It is quite normal to say that every sell off starts with profit taking. So do not start buying dips immediately.

Technical support for the day is at 6180. On higher side major technical resistance will be at 6240 to 6260.

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 take support at 6215 levels. If it goes in a gap formation then we can see some disturbing fall. So, question is that are we going to see 6100 again. I feel that it can go to test 6100-6080 levels. This fall can intensify is global sell off begin which I am already talking from past few days. Let us see what is going to happen next.

S&P 500 (USA) – It has stopped exactly near previous all-time high. It has almost slipped by 30 points from its high. In this process it has broken 1750 also. I am now expecting this dip to continue. Next technical support will emerge at 1730 levels. Well, as I always said, there is no use of technical levels. Take a core that this market can see a dip. Stay away from long and go short.

Regards,

Praveen Kumar