21 November 2013: Nifty Elliott wave analysis: So price correction begins. Nifty can go as low as 6060 levels. Technical resistance will be at 6160 levels. Avoid all possible long deals for few days for caution.

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

For 21 November 2013: -

On 20 November 2013, FII Bought INR 80.40 crs and DII Sold INR 283.81 crs

FIIs were buying aggressively in past few days and suddenly those dried up yesterday. Buying today is not a guarantee for buy tomorrow. Most important is that FIIs are buying heavily near top. This is not unusual and do not misinterpret that it’s a bullish sign.

S&P 500 took a dip in last hour of trades last night. Problem with Indian market is that it is known to take wild impulsive dip even in good global cues. Yesterday’s last 30 minutes dive was one such example. It was justifying on technical chart too. 6200 was 62% retrenchment. I have already suspected that 6240 will not tested. So far, it moves the way shown in our road map.

We can expect technical resistance at 6160 to 6189 levels. In the down side we can expect support to emerge at 6060. Below 6060, it can support at every 30 points like 6030, 6000 and 5970. Do we have threat to test all? I cannot deny such situation.

I found some stocks yesterday for shorting. We need to see that momentum stocks were negative or weak yesterday. Stocks like Reliance, LT, Tata Steel, RCOM are on dip or profit taking. It is itself showing sign of weak trend ahead.

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 6189-6200. Technical charts are suggesting for a move towards 6080 to 6050 levels. I can say that traders should use odd and impulsive rise for shorting only. Do not expect easy day for recovery. Even if recovery comes then also it will be sold at higher levels.   

S&P 500 (USA) – I said to short S&P 500 for a move towards 1770. Here it begins. We saw another dip in last hour of trades. Technical charts are still justifying for a move towards 1770. If it breaks 1770 then we can expect for a move towards 1748-1742 levels. On higher side, it seems that 1803 will remains a top. I can still say that something big is coming in few days or weeks. Long trades are not good to hold or even to take risk.

Regards,

Praveen Kumar