24 December 2013: Nifty Elliott wave analysis: Once it is stopping then 6320 then keep your eye on 6260 as threshold point. Quick swings are very much possible as volume will be low by FII as they are on Holiday mood now.

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

For 24 December 2013: -

On 23 December 2013, FII Bought INR 135.42 crs and DII Sold INR 38.35 crs

I have already said that as long as it holds 6230 we should expect a move towards 6320. It missed it just by 2 points and came off very sharply to hit 6271. We have support at 6260 on daily chart. I am taking Thursday’s high as decisive before derivative expiry. Note that we have holiday tomorrow and very next day we have derivative expiry. So we can expect volatility today.

Suppose if it stand below my critical 6260 levels then I cannot deny the possibility of 6230 to 6200 in down side. 2013 is memorable year for many global markets but for Indian market it remains pinching. We are almost on year end trade.

Real under performance can be a threat. Although FII goes on Holiday mood but out market may see reaction if weakness come. Above FII figures are showing that we may be heading towards dull day in term of money flow. This factor can make market either extremely dull or extremely volatile.  

For this kind of day, we must get a threshold point as ‘make or break’ levels. For today it is 6260. Short below 6260. Hold long as long as it holds 6260.

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

Strategy for Nifty December future – It may open flat. It has immediate trading support at 6275 levels only. It can be fine as long as it holds 6275. Once it breaks 6275 then you can expect a fall in market. volume is going to be low so one should be very time specific for trades. I am hoping for decisive trading move in last hours only.  Optimism may drive market in first half.

S&P 500 (USA) – Once it crosses 814, we have reasons to expect 1854. Right now it is on mini resistance area of 1830. It can take some pause but finally it can try to hit 1854. I have a time line which is running short. I have already said earlier that cross above 1814 will generate target as 1854 for December month. It is looking like it can take one day big up. Trades should still be on long side as long as 1814 holds. Bulls and bears, both will remember 2013 forever!!!

Regards,

Praveen Kumar