14 November 2013: Nifty Elliott wave analysis: I still hope for strong trading support to emerge in the zone of 5975 to 5960. Bounce deserve after seven straight negative close.

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

For 14 November 2013: -

On 13 November 2013, FII Bought INR 299.70 crs and DII Sold INR 253.01 crs

First good news for me is that 10 year bond yield goes at 8.92. Second good news is that all results like SBIN, TATASTEEL, ONGC and M&M, are stronger than expected. Third good news is that bottom is likely to form near my expected 50 DMA support which came at 5975 – 5960 ranges.

Impact of above is likely to be a gap up. Yes, I bought the dip and now I will wait for rebound, a real strong rebound. I have already said that it must see respect for 5975 to 5960 levels. We got a low at 5972. An only disappointing thing was that it got the close near days low again but such things used to happen in panic.

VIX came near to 21 but not manage to get a close above 21. I hope that it will oscillate in the zone of 21 to 18. If this is true then we are set for a relief rally. I am naming it as a relief rally only. One must note that we still need a positive close and then a follow up buying.

I can say that the way SBIN and TATA STEEL gave their number, they deserve re-rating. This can happen now or in coming few quarters, that depends on market but 101% they deserve. I am already heaviy bullish on TATASTEEL from past few months. I may plan to add SBIN too.

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 higher today as SGX NIFTY is giving 50 points higher. I was already anticipating this yesterday. So, 6015 is supposed to be a magic support which was mentioned yesterday. I hope to see a higher opening which will proved as ‘bulls gap up’. It means that it should not filled up.

S&P 500 (USA) – Finally, we got the desired bounce and S&P 500 is on its newer life time high. I am expecting it to come near to 1800 as of now. We must note that that we are in last stage of rally but a topping out pattern is still missing. I am expecting the extension of rise and a topping out pattern to come sooner. It may be by this week of early next week. As long as it is above 1770, bears should be silent.

Regards,

Praveen Kumar