20 November 2013: Nifty Elliott wave analysis: I can still say, 6240 will be tougher task to cross or may even untested. Break below 6160, it can see fall and only fall. Let us see!!!

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

For 20 November 2013: -

On 19 November 2013, FII Bought INR 1014.61 crs and DII Sold INR 726.55 crs

I said this from past two trading days that Nifty will not get easy cross of 6240. So far, we saw high at 6212 levels. I can say that possibility of a pullback is strong for today. We already some short shorts on yesterday’s rise and hoping for gain today.

Global market mat give us a sign of cooling off very sooner. Asian market is trading soft this morning. Market need to consider if S&P 500 gave top at 1803 itself. Worse part is that Indian markets fail to give fresh life time high. It is so unfortunate on charts.

Technical charts are suggesting for stiff resistance at 6240. I am not claiming that it can test. It may stop even at 6200 or may try to violate the meaning of 6240 also by few points. In terms of supports, we have 6160 to 6140 as crucial support. Do not expect the end of recovery as long as we are above 6160-6140 ranges.

I have no plan to buy top so I prefer to wait and watch near 6240. I found some stocks yesterday for shorting. We need to see that momentum stocks were negative or weak yesterday. It was only reality and banking stocks which were saving the day.

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 weak today. Immediate resistance will be at 6250 and then at 6270 levels. Intraday support will emerge at 6190-6200 levels. If it breaks and stay below 6189 for 5-10 minutes then it will be short to trade. Break below 6189 will give levels like 6140-6130 sooner. On higher side we may face resistance at 6240 and then at 6275.

S&P 500 (USA) – There were no great chance in US market last night. It was soft and dull trading session. I still feel that as long as it is staying below 1803 we can expect for dip although it is still early to say this for a top. Immediate short term support is at 1770. S&P 500 is short for trade as of now with a stop loss at 1803 for a move towards 1770.

I always believe that strongest bulls of the world are in USA so I am not in hurry to conclude for massive shorting in the anticipation of top formation.

Regards,

Praveen Kumar