10 January 2014: Nifty Elliott wave analysis: It is not looking to hold support anymore now. Below 6145, we can expect the test of 6120 to 6085 levels on down side. Infosys result will be on focus now.

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

For 10 January 2014: -

On 09 January 2014, FII Sold INR 3.74 crs and DII Sold INR 118.45 crs

I cannot sense for recovery. We have passed five days in same range and it makes everyone irritated from dealing Nifty. Strong part of market has also seen fall yesterday. Mid cap and small cap index also lost nearly 1% in last trading session when Nifty closed flat.

Now all eyes are on Infosys result which will come before market opening hours. I have a view that Infosys has done all good. Whatever is it going to present, market will react negatively. As result day always invites big moves so prepare to see wild trades. I cannot deny the possibility of dip of 8-10% in today’s session.

We have seen so many barriers breaking on Nifty. Firstly, it was 6260 and then 6170. Now it can break next support of 6145 also. Likely support can emerge at 6120 and then 6085 levels.

I can be positive on US market but cannot keep same view for Indian market. It is looking like another round of sell before any good recovery. I can still hope for recovery if it saves 6145. Recovery can come either from 6145 or may be from 6120 levels.

Strategy for Nifty January future – I can still sense that 6170-6165 is meaningful support but recovery is not impressive at all. SGX Nifty is giving a hint for weak opening near 6170 itself. If this really happens then we can see market opening on panic note. It is going to be decisive after that. On higher side, it cannot be safe unless stand above 6230. Be caution as its Friday and market were weak for past four days.

S&P 500 (USA) – We saw S&P falling from 1841 and then recovering from support of 1830. I am still sensing that S&P 500 is trying to make double top before turning decisive. In this process if it surpasses 1850-1854 levels then we will see another round of rise which can bring it towards 1880 levels. It is not easy to trade but I still say buy in intraday dip as long as 1824 hold.  

Regards,

Praveen Kumar