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