10 December 2013: Nifty Elliott wave analysis: Today is 13th day from the low of 5972. Expect profit taking to hit at higher level. Technical resistance will be only at new all-time high at 6415.

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

For 10 December 2013: -

On 09 December 2013, FII Bought INR 2473.17 crs and DII Sold INR 1205.81 crs

So finally, Indian market also hit a new life time high in the year 2013. I did not see any great energy in the market. In fact, closing almost goes near low point of the day. It is happening very frequently. Market opening higher and closing goes to day’s low, although day to day basis it is going higher. This kind of pattern is not good for any rising or bull market.

FII has bought this market heavily yesterday. Their investment goes over 1 lakh crs in the year 2013.

Technical resistance will be only at 6415 which is life time high so far. We are close to this level. Now, one negative close will signal the sign of profit taking. I strongly believe that profit taking can hit by today itself. Today is 13^th day after hitting 5972 levels. If Nifty spot goes below 6340 then we will get first sign of possible profit taking.

Front line stocks are looking fairly valued at this price and mid cap stocks are not on better interest so far. Let us see how market is going to respond before fed meeting next week.

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

Strategy for Nifty December future – NIFTY future is signaling for higher start as indicated by SGX NIFTY. Remember, yesterday’s opening trades fail to open parallel to SGX. In fact it was way lower. This might be due to DII selling or over optimism by global market. We may get same thing today. It may not be as strong as shown by SGX which is 30-35 points higher. Technical resistance is at 6420-6425 levels. Break below 6370 confirm a possible dip.

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