25 November 2013: Nifty Elliott wave analysis: It has again saved 5970 and so life for bulls will remain there. Iran signs nuclear deal and world cheers. Shall we expect get some support in India too?

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

For 25 November 2013: -

On 22 November 2013, FII Sold INR 2.83 crs and DII Sold INR 252.45 crs

I still believe that as long as it holds 5970 levels we can expect for a rise. It may be technical recovery but it deserve rise. Technical indicators are turning for positive divergence. We should note that market slipped with low volume this time. This is also good factor for traders.

I am still concerned with under performance in Indian market. Note that almost all major global indices are hitting their new 52 week higher levels. Indian market is almost on the lowest point of past one month’s trade.

Technical suggest for a strong support at 5970 levels. RSI also gave a positive divergence but this divergence has a meaning only after at least one positive close. This is importance that we close negative from past three trading days in a row. Even after strong global cues we need at least one positive close to conclude for some short term low.

I like to add a warning too with the beginning of this week. Nifty closed below 6000 levels for twice. Technical charts are saying that if Nifty starts closing below 5970 then it may give a fall as brutal as 5850 and 5700 of Nifty. Be optimistic for rebound but be cautious too. Iran nuclear deal will give advantage to India also as India can import crude oil from Iran up to its full capacity.

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 to positive today. Assume support at 6000 and 5985 levels. On higher side it still needs to cross above 6070 to attract short covering. It is still a tough task. It is too early to conclude or restore confidence for bulls. One thing is clear; do not buy anything if it slips below 5985 levels. So the range of 6070 to 5985 will critical and possesses technical meaning. It may not be a bad idea to be silent in the range of 6070 to 5985.  

S&P 500 (USA) – It has closed above 1803 and now showing all signs for a move towards 1824-1830 levels. Immediate trading support will be at 1798 and 1789 levels. It is looking like to advance with some gap up today. A moderate resistance may come at 1813 levels also but that resistance can be bought by bulls. I am optimistic for this week.  If a dip has to come then also it will come second half of the week. There is nothing which can suggest sell except negative long – long negative divergence.

Regards,

Praveen Kumar