30 December 2013: Nifty Elliott wave analysis: 6320 is still meaningful resistance. Crossover can give us 6350 to 6360. It is going to be dull-limited and boring week. Be stock specific.

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

For 30 December 2013: -

On 27 December 2013, FII Bought INR 295.76 crs and DII Sold INR 159.85 crs

Volume dried up and participation is still low expect expiry day. We may not see anything great on volume front for this week too. This is not going to be good either for price movement. Long term charts are giving us a sense that we are on threshold point for some big fresh rise but we came at this point for many times in recent months.   

Due to above reason, I am considering that 6320 is a stiff resistance. It is not that only 6320 is the meaningful resistance. Even if we crosses then also will see another stiff resistance at 6360 levels. Current, consolidating pattern has formed many technical resistances. We will see higher levels later but first we should get a technical pullback.

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.

I suggest participating trades to limited extent as volume will be low for this week. It is better to catch the moves of stocks which will come with volume. We may not see great trading range too.

For today, technical resistance will be at 6324 and 6350. Below 6280-6260 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. It is already trading in the zone of 6370 – 6380 levels. We may not see anything big from current levels. As it is not giving anything negative so it can be up but I still feel that anything which comes in positive will be very limited now. Logical resistance can be 6417-6420 levels.  

S&P 500 (USA) – It has closed negative on Friday night. It gives me a sense that profit taking may start near the resistance of 1854. What can be magnitude of correction?  It depends on market condition. I said this in past also that world’s strongest bulls are at USA. Technical charts are suggesting that now traders should short any rise with stop loss at 1854 for 2-3% pullback at least. If it crosses 1854 then it will again prepare for another higher level like 1880!!!

Regards,

Praveen Kumar