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.
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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
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