11 December 2013: Nifty Elliott wave analysis: It is topping out pattern. I am expecting continuation of profit taking. Bull’s last hope is 6300-6280. Banks and capital goods may hurt now!!!

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

For 11 December 2013: -

On 10 December 2013, FII Bought INR 395.68 crs and DII Sold INR 628.16 crs

We got low at 6307 yesterday in the process of correction. I need to specify that 6300-6280 is going to be the zone where bulls may make their full effort to save the momentum. Still, there are many odd sign that momentum can end anytime.

FII has bought this market heavily on Monday but left on doldrums yesterday. I always say that FIIs are known to buy top heavily. So, we should not try to conclude too many things on just their data.  

From past two trading sessions small cap indices are not performing parallel to Nifty. If Nifty gains then small cap index gains lesser. If nifty falls small cap indices fall more. This kind of trading cue suggests that traders might be close to fulfill their appetite.

As I said, 6300-6280 is the zone where bulls must make their full effort. Once it breaks 6280 then bears will choose their ways. Remember, Indian market has a history of trapping bulls at 6300 + levels. More over RSI has negative divergence on daily chart now.

I find banking and capital goods as possible culprit now if market goes on breakdown mode. Equally, many global indies are looking for some weakness in coming days.

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 soft start for the day. I am saying this again, start can be weaker than perhaps what SGX Nifty will say at 9:00 am. Yesterday was also an example. Technical charts are suggesting that it is short as long as staying below 6400. One break below 6335-6330 will cause a dip towards 6250.

S&P 500 (USA) – No matter what is happening, if S&P 500 is staying below 1813 then it is just for short towards a move for 1780. Once it breaks 1780 then we can expect 1750-1740 too. We are almost coming mid of the month now. All eyes may shift towards fed upcoming meeting.  Now, what’s a bull suggests? Think to add long only above 1814 for a move towards 1830-1840-1854.

Regards,

Praveen Kumar