02 January 2014: Nifty Elliott wave analysis: Technical support is at 6260 and resistance will be at 6320-6350. Volume will start improving but normalcy will come only from the beginning of next week.

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

For 02 January 2014: -

On 01 January 2014, FII Bought INR 10.16 crs and DII Sold INR 222.12 crs

We can expect improvement in trading volume from today onwards but it can still take two days more. I feel that normal trading volume will come only from the beginning of next week. We saw good rise in mid cap and small cap indices. Nifty remains silent near 6300 levels.

It is looking like to gain near 6350. I can still say that 6320 and 6350 is going to be stiff resistance and selling may emerge at higher levels. Due to low trading volume we may have some freak breakout. In coming few days we will know about such facts.

It seems that choppiness is saving market from fall. Even if this is true then also we can see this market at current levels for today and tomorrow too. One must note that few global markets are still on New Year holiday.

I am keeping technical study same for the day. 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. It may again slip from higher levels for today also. This study will be effective once volume hit the market. We may need to wait for next week for any direction. 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 with thin volume. We can expect trading resistance 6400 levels only while support should emerge at 6340 and 6320 levels. It seems that 6420 levels as threshold trading resistance. In the down side 6320 levels will act as downside threshold. We need to wait for the break of this 100 points trading range.  

S&P 500 (USA) – It has ended year with its own fashion and tradition of hitting newer all-time high again. I can say that it is near top but it is also true that it is a rally which runs throughout the year. Bears got nothing in 2013. It has gained nearly 30%. We should see for the resistance at 1854 as next resistance or target. Cross over will add fuel for a move towards 1880 levels too. We may be close to top but confirmation has yet to come.  

Regards,

Praveen Kumar