29 November 2013: Nifty Elliott wave analysis: Resistance is at 6113 and support at 6060 levels. One can expect some direction beyond this range. It is still looks weak from higher levels.

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

For 29 November 2013: -

On 28 November 2013, FII Bought INR 102.91 crs and DII Bought INR 330.51 crs

Nifty hit a high at 6113 levels yesterday and closed at 6091 levels. So far, this is not giving any big threat. It still looks dull and this dull move cause in to weakness anytime. Technical support is at 6060-6030 levels. We must note that Indian market is going through under performance. I am very much concerned with this factor.

VIX is also running near 21 and always issuing threat to move higher. We should note that Indian market is making tops which are lower than previous. It is forming a right angle triangle on chart with base at 5970. At this kind of formation, even single thrust can do big damage.

Most of the time in recent past, I prefer to buy near 6000 but not this time. History suggests that third attempt usually fail in Indian market if it has to save support. Right now 50 DMA is at 6062 levels. Remember, it has extended from 5980 to 6062.

For today’s trading session also we will see trading support to emerge at 6060 and then 6030-6024 levels. Once it breaks 6030-6024 then we can expect rapid fall towards 5970. Any break below 5970 will push bulls in the back seat. On higher side even 6113 levels may not be safe. Only above 6113, it may try to impress bulls.

Visit again to read my intraday updates as I can update about those only during market hours.

Strategy for Nifty December future – NIFTY future will open on flat note. Threshold point support will be at 6115. If it breaks then we can expect fall towards 6080 levels. On higher side 6170 will act as stiff resistance and cross may result a move towards 6200. First day of expiry is going to be important to take cue for rest of the month.

S&P 500 (USA) – It is on another life time high but there is no great firework or euphoria kind situation. US market will be closed tonight. I still consider that 1813 may be under reach but this index has to stop somewhere. So far, it is going without gravity. Technical says that as long as it is above 1790, there will be no fear for bulls. December is traditionally a good month for market but this time story should be different. In my view, people will book some profit on year end trade.

Regards,

Praveen Kumar