15 January 2014: Nifty Elliott wave analysis: 6300 is still tougher to deal. Technical support will be at 6200-6190 which may be tested in coming few days again. BANK NIFTY- last hope @ 10800 !!!

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

For 15 January 2014: -

On 14 January 2014, FII Sold INR 260.88 crs and DII Sold INR 97.93 crs

Above figures are showing some rare development. Nifty is at 6250 ranges and FII has sold in cash market. This may be concerning as it may be the first hint of money out flow. Since 1^st January 2014 itself, market is not going in confident mood. It is showing the reflection of some possible nervousness which is coming due to political moves. We may not see good supportive decision for economy.

We are again on the day when global market is moving higher as US recovered its previous day’s loss. This is avoiding immediate weakness in Indian market. I cannot see much negative as global cues. In fact all are positives only.

For today’s session we have two important supports. One is at 6240; if it breaks then we can expect next support at 6190 levels only. On higher side 6300 is still a challenging level. Charts will open the scope of rise as long as it holds 6190 levels.  

It is a big question how long can it hold. I suggest to watch mid cap and small cap indices as first sign of trouble or strength will come from there only. Bank Nifty is still on concerning note. Any break below 10800 levels can cause trouble.

Strategy for Nifty January future – We can expect flat opening for today. Technical resistance will be at 6290 to 6310 levels. In the downside it can see some remarkable profit taking only if it breaks 6230 levels. It will be better to watch for the breaks 6230 for shorting for intraday. It is not very impossible. It can happen anytime. You can expect better activity on Bank Nifty.

S&P 500 (USA) – I said yesterday that let us see the levels of 1824 as resistance first. If it fails then only it is a short. It has opened higher and immediately goes above 1824 and then recovered in a massive way. This is the reason I always say that bulls are strongest at USA. Now it is again generating a scope to test 1845-1850 levels. We will see possible top formation in the zone of 1845-1850. Next bullish move can start only above 1854. Cross over of 1854 can give 1880 levels.

Regards,

Praveen Kumar