22 November 2013: Nifty Elliott wave analysis: It was so rapid fall to break 6000. Now, do not short unless it breaks 5970 support band. We are just few days away from derivative expiry. Hoping for rebound today!!!

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

For 22 November 2013: -

On 21 November 2013, FII Sold INR 59.80 crs and DII Sold INR 650.66 crs

All has sold yesterday. Sell figures in cash market by FII is not surprising. Typically, those figures are just confusing for themselves. Now, suppose if it rebound from here then we can say that FII has sold in cash market on bottom day. Yesterday, I bought softly but I bought. I hope that 5970 will be saved. It is important to note that 5970 should be a strict stop loss for long which one is taking at lower levels.  

We are going to enter in derivative expiry week. This is giving me a sense that people should try to enter December month with some hope. Now, this hope is based on state assembly result which will come on 8^th December. This is going to be interesting expiry. Market is betting on BJP for their favour.

For today’s trading session, Nifty has support at 5970 to 5960 levels. Violation of this range will open space for 5900 to 5850 also. If it saves then we can expect a move towards 6060 to 6100 levels.

I will bet on steel stocks and few selected auto stocks for my list. I must say that comfort levels are not here to buy as of yesterday’s close. We need a higher close and fresh strength. So you still need to judge parameters during trading hours today.  

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 flat today. Immediate trading support will be at 6000 levels. Crossover of 6075 can give a clear buy. Till that time it will fluctuate up – down pattern. It means that range of 6000 to 6075 will just going to be a swing. I hope for higher break in second half which will come again after some consolidation. As long as 6000 holds, I will not short. 6000 to 5990 is a support band for Nifty November month future.

S&P 500 (USA) – I always believe that strongest bulls of the world are at USA only. They saved their market again. What does yesterday’s rebound means? I feel that it will surpass 1803 also and this time it may try to take a hit at 1824 to 1830. As long as 1776 to 1770 holds, it remains open for upward journey. Take this as fair way, bears has one day and bulls has five days kind of ratio. This ratio is perhaps best in US market only.   

Regards,

Praveen Kumar