18 November 2013: Nifty Elliott wave analysis: Expect 6240 as least target in this recovery or upside. Be cautious after a wild gap up today. Enjoy if you have long from past week. Support – 6050 > 6030.

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

For 18 November 2013: -

On 14 November 2013, FII Bought INR 970.03 crs and DII Sold INR 410.81 crs

Welcome back after a long weekend!!!

Indian market is going to take mammoth gap up of nearly 80-100 points. We need to accept that even on Thursday it took a bull’s gap up. Closing was not as strong as I was expecting but I still believe that if bounce is coming from 50 DMA then it need to sustain for trading.

Recovery has justified by FII huge buying in last trading session. We can add much logic to demand for recovery. There are few facts. One is, fall stop on technical support of 50 DMA. Second is, rise or recovery will depend on the intensity of global market. Nikkei surpasses 15000 marks this morning and gaining almost 1000 points in past few days while we slipped.

Technical charts are suggesting for support at 6050 to 6030 and final support is at 5970. On higher side, I am expecting 6240 as first challenging levels. Take a note that current structure is alarming with a clear hint of fall from higher levels whenever it comes.

I like to buy metal, auto and technology stocks for this week of trades. There is no idea for shorting while we have garden of opportunities to trade long side for good gains.  

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 hint for 6170. It is going to be 80 points higher where we closed on last Thursday. After such a big gap up, intraday may not have big meaning to trade. Let us see if it can able to close well off any day’s low. We still need to see that sort of closing which should be well away from day’s low.

S&P 500 (USA) – We just need few more point to get another landmark of 1800 on S&P 500. Technical charts are suggesting that we can strongly surpass those. As long as S&P stay above 1785 we can hope for another great extension. What can be next for bulls? Yes, it can go as high as 1824 to 1830. If this rally has to end then it may fail before 1803. To trade fresh long deals, wait for the crossover of 1803 and then enjoy another 1% to 1.50% rally.

I always believe that strongest bulls of the world are in USA.

Regards,

Praveen Kumar