09 December 2013: Nifty Elliott wave analysis: Market to challenge for a new all-time high today. It will enjoy for the verdict of good governance and change after long policy paralysis.

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

For 09 December 2013: -

On 06 December 2013, FII Bought INR 863.77 crs and DII Sold INR 743.93 crs

We will get clear picture today. Market will challenge its life time high which is at 6357. BJP gave what market was anticipating. It will cause another wild gap up. Nifty closed at 6260 in past trading session which is just 100 points away from its life time high. If we get a gap up as suggested by SGX Nifty then it will surely open above life time high.

SGX Nifty is hinting opening of 130 points higher. Well, it is not going like many traders were feared past week. It is not going to opening 300-400 points gap up. This is good thing as market must save itself from overreaction.

If previous top of 6357 remains untraded after wild gap up then it cannot be easy to conclude for gap fill theory. I can say just one thing; do not jump after gap up. Wait and watch before you take any position. I have no position as of now as I preferred to go blank before event.

Technically, there cannot be any resistance if it breaks previous all-time high. It will enjoy for the verdict of good governance and change after long policy paralysis. Do note that Indian market was the only one who has failed to break its life time high in the year 2013. This is a lesson for UPA.

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 way higher today, may be near 6450. It should attract short covering. In the process of short covering it may come near 6500 levels. We can easily expect rush and panic amongst bears now. Be cautious at higher levels like 6500. It is not going to easy day at all although it may generate technical target of 6600 also if we revive well above new-life time high.

S&P 500 (USA) – I still believe that 1813 is going to be a challenging resistance. If it manages to surpass 1813 then one need to accept for the newer target of 1854 for the month of December. The rally which has started in the month of January has still some leg but it must be near to stop now. Let us see what is coming. I will prefer to trade long only above 1813 and that’s also if trades sustain for some time above 1813. Fed minutes will be on trader’s radar which will come on 17-18 December 2013.   

Regards,

Praveen Kumar