02 December 2013: Nifty Elliott wave analysis: There was no big surprise on GDP, it came at 4.80%. Technical resistance for NIFTY is at 6200 levels. Below 6140, bears will come again !!!

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

For 02 December 2013: -

On 29 November 2013, FII Bought INR 745.16 crs and DII Sold INR 101.76 crs

It was most wild rise which came on Friday in first 15 minutes of trading. Market was very optimistic on GDP data. Well, after market hours it came in line with expectation at 4.80%. I cannot say that it was big positive surprise. In fact I can say that if GDP expectation was the reason then market has over reacted. Still, we need to accept that Indian market try to fill the underperformance of November month to some extent.

Even after strong rise in NIFTY, we have seen that India VIX was gaining over 3.20%. This should be down at least. These are factors affecting Nifty. It was banking stocks which moved higher on Friday.

Technical charts are definitely looking supportive as it has closed with strong gain and close even at day’s high.

I can still say that it has near meaningful resistance. If I have to pin point a resistance then I will pick 6213 as tougher figure. It has the level which was tested on 19^th November before sell off. In the down side we should expect support at 6140. Below 6140 there cannot be reason to hold any long. I have no long in the rise.

Do note that US market closed at day’s low on Friday after a long time. It is not weak yet on chat but surely on decisive resistance and on possible reversal point.

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 either flat or with some hang over rise of last trading session. Immediate resistance will be at 6243-6245. Crossover can give us levels like 6260-6285-6300. We need trades below 6190 to say for weakness. There is a possibility of test of 6130 if it sustain below 6130. I am not very positive on market.

S&P 500 (USA) – It hit 1813 on Friday’s short trading session and closed near day’s low after a dip from high. So, I am near to conclude that we are on almost near top on US indices. CBEO VIX starts moving higher from nearer levels of 12. This is a strong indication that something can go wrong on indices very soon. I still do not know how long it will take to break as it has extended from so long. Just one clarity that rise has almost done. One must note that volumes are also very low now a day.

Regards,

Praveen Kumar