20 December 2013: Nifty Elliott wave analysis: Technical support at 6145-6140. If it breaks then we can expect panic sell off before derivative expiry. Stiff resistance @ 6200-6230 levels now.
You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 20
December 2013: -
On 19
December 2013, FII Bought INR 2264.11 crs and DII Sold INR 41.59 crs
I am still
saying FOMC minutes are negative for emerging market and specially India. Market
slipped in line with my expectation from higher levels and washed out in just
few minutes. It is noticeable that Indian market has underperformed global
indices yesterday and in past few days.
Do not get
encouraged by looking heavy buy figure by FII in cash market. I always say that
FIIs are known to buy tops heavily and sell bottoms heavily. I like to draw
your attention towards one thing, where is advance tax numbers? Think!!!
One should
observe one thing on chart. It is looking like Nifty is knocking 50 DMA on
constant basis. 50 DMA is like a door. If Nifty knocked so many times then it
will open and invite it to enter below 50 DMA. This is definitely not a good
pattern for bulls.
Technical charts
are suggesting that 6160-6145 is last hope area. If it starts trading below
6145 then one can expect steep fall towards 6080 levels. In worst case scenario
it can hit 6000 levels as well. On higher side 6200 to 6230 will act as stiff
resistance zone.
Visit
again to read my intraday updates as I can update about those only during
market hours.
Strategy
for Nifty December future – It is likely to
see weak opening. It has technical support at 6140 levels. One needs to note
that we are moving towards derivative expiry. Do not think that dip can be
bought easily this time. If it sustain
below 6140 then we can see some panic selling also. Technically, we are on make
or break levels before expiry.
S&P
500
(USA) – It closed dead flat and I
will retain my views, analysis remains same. It is just 4 points away from
another all-time high. I highlighted this in past also that if it breaks 1814
on higher side in December month then expect a wild move towards 1854 levels
which is indicated by gann resistance line for December month. It is the time
to forget yesterday and think about today. One must watch for 1814 to add fresh
long. I cannot deny the possibility of “Blow up top formation”.
Regards,
Praveen
Kumar
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