01 January 2013: Nifty Elliott wave analysis: Optimism growing over US fiscal cliff. It has not yet finalized yet. Little higher opening is expected on the beginning of year 2013.

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

Today’s outlook: -

Wishing all of you and your family a very happy 2013!!!

Optimism over US fiscal cliff will give us little higher opening. As SGX is hinting it may be near 5950 zones. One needs to note that we have technical resistance in the zone of 5950 to 5965 levels. Will it give breakout on first day of the year? At least developments are suggesting that we should hope. Almost all major Asian market has closed today and activity will be very less today.

We may open higher but activity might be less. We need to note that deal has yet to be finalized. Movement will be lot dependant on that also. As per market talk we may expect talks to continue for today also. Schedule is ending today at 10:30 am as per Indian timing.

We have seen three days of choppy movement in past three trading sessions. It is in good sharp to break on the higher side today. One needs to be cautious as we will open on technical resistances. Technical indicators are suggesting for the rise but those will not come will great conviction. I like to trade cautious long. Cross over of 5967 will give Nifty an opportunity to hit 6000 + levels.

Many times we have seen 5950-5965 acting as resistance zone where supply emerges. If this happens again then we will see same old story of struggle at 5900 marks. I cannot eliminate any of these two options.   

No technical indicators are concerning as long as Nifty is above 5900-5880 zone. In a dull market, it will be equally hard to talk about even 10-20 intraday points.

Conclusion Nifty: It is looking to give us a higher opening but those will give a opening in the resistance zone. It has technical resistance at 5950 to 5965. Volume is expected to be very low and dull as market participants will be less today. So far it is looking good to welcome 2013 but we need to see higher levels with optimism.

S&P 500 – It has saved 200 DMA @ 1385 with good margin and bounced. Technical charts are now suggesting that US market is going to give a new 52 weeks high in the month of January and perhaps in the first half itself. My first target is now at 1470.Then I will wait for cross over of 1475 to bet for 1500 levels. Immediate technical support will be at 1418 – 1413 levels.  

Regards,

Praveen Kumar