27 December 2013: Nifty Elliott wave analysis: If Nifty spot stand below 6260 then it will favour bears only for a move towards 6200. Technical resistance will be at 6300 and 6320 levels.

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

For 27 December 2013: -

On 26 December 2013, FII Bought INR 743.70 crs and DII Sold INR 203.44 crs

Volume is not very bad but comparing to expiry day it was dull. In fact it was most dull expiry of past 12 months. Nifty moved in a range and closed with narrow gain. I can still say that one must focus on 6260 as threshold point.

Currently, Indian market is in pause state when almost every global index advanced in this month. I always say that underperformance is killer for Indian market. We must be cautious on mid cap and small cap stocks.

VIX is coming towards 14 but Nifty remains at the same value. This is something which is surprising me most. We are heading towards year end trades. If nifty spot breaks and stay below 6260 then we can see some decisive dip towards 6200.

Any stock, which has gained like 100% in past few months, may come under pressure. Some front like stocks like Auro Pharma and Tata Steel comes under such category. One must avoid fresh investment on such stocks for now. Stocks, like Reliance may play decisive role now if fall comes on index.

For today, technical resistance will be at 6300 and 6320. Below 6260 we can see some drag towards 6200. I still believe that if fall comes it can be little bigger in magnitude.

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

Strategy for Nifty January future – It may open flat to negative. SGX is hinting for the opening near 6333 which is well 17 points down. If this happens then we can see a move towards 6280 in quicker than expected time. On higher side resistance will be at 6370 level. Even if Nifty January future trades with choppiness then also it will favour bears today. It is looking like for the bad beginning of new series.

S&P 500 (USA) – It is a great rise in US market. S&P 500 came at 1842. Just comparing with Indian market, which was never confident like this for any rise in the year 2013. Now also S&P has target at 1854. As we are moving towards target and resistance of 1854 so caution is required. One should not try to pin point the top and so long trades should be avoided from towards if it trade negative. Still, 1854 is not beyond reach.

Regards,

Praveen Kumar