05 December 2013: Nifty Elliott wave analysis: Higher opening is coming after exit poll of five states assembly election. Any close above 6240-6250 will give new all time high !!!

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

For 05 December 2013: -

On 04 December 2013, FII Bought INR 52.11 crs and DII Sold INR 18.05 crs

VIX goes lower by more than 4% yesterday. It has slipped from 25.45 levels and closed at 23.71. We have lesser and cautious activity in Indian market yesterday. Market is desperately waiting for the outcome of recent five states assembly election. Exit poll suggests that market favourite BJP has gained significant edge in almost four states. Three states are clearly in favour of BJP.

Above hope is driving Indian market against all negative global cues. It is like Indian market suddenly going in euphoric mood. SGX NIFTY is hinting for a boom start after yesterday’s profit taking. It may see gap up of 70 points. If it really goes so wild then once again traders will not get anything much to trade.

So call is simple. Do not trade if we get opening above 6213 levels. I need to assume that it will have to break 6190 support to see any profit taking. As long as it will spend time above 6190, there is nothing bad for bulls.

Technical charts are still saying that 6140 is going to be short term support. We can expect a down trend parallel to global market only if it breaks 6140. Let us see what is going to happen today. Will we see any profit taking profit higher levels or not.

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 near 6260 and there will not be anything more to deal. Once it gives gap up then market will signal that Indian market will not give fall. Be preparing for actual counting on 8^th December. If BJP takes four wins then it will see massive rally on Monday. It is going to be gamble and who can play.

S&P 500 (USA) – It bounced from 1780 and it was stronger than expected bounce. This bounce may try to sustain even for today and it can see a move towards 1800 before failing. As it has already broken 1790 and spend a good time so this market is turning sell on rise with al stop loss at 1814. One must note that crossover of 1814 will give levels like 1854 also.

Regards,

Praveen Kumar