03 February 2014: Nifty Elliott wave analysis: I still hope for rebound as long as it holds 6026-6000 support. Global sell off has spoiled the possibility but it can again take fresh attempt.
You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 03
February 2014: -
On 31
January 2014, FII Sold INR 652.97 crs and DII Bought INR 307.01 crs
First point
to notice on Friday’s session was that Small cap and mid cap indices has rebounded
by nearly 2% or more. Second thing is that we may be close to the support. US
sell off extended little more beyond expectation. Sell off was huge in Europe
too but those indices has recovered very well from their lows.
From past
four trading sessions, India VIX is giving signs of cooling effect which may be
a signal that Nifty can get some support sooner. Question is where and when? I
still believe for one rebound in the market form nearer support of 6000 levels.
We can consider that exact supports for trading are at 6026 – 6000 and then
finally at 5972.
For Friday
I talked about ‘island reversal’ pattern but things do not look like that. So,
are we heading for serious trouble? I cannot deny the chances. We still need a
strong bull’s gap up. Those hopes have melted down due to global sell off in
between.
I can see
two strong supports in down side. First comes at Thursday’s low of 6027 and the
last one comes at 5972. Pure charting suggests that bulls will be back strongly
if it manages to come at 6110. I see it happening today. Let us see if this can
be reality. Bulls can be comfortable for recovery only if Nifty manages to
spend time above 6110. It looks tough but not impossible.
Strategy
for Nifty February future – Nifty February
future is very likely to see a gap down of 20-30 points as indicated by SGX
NIFTY. This is going to hurt the chart as it can open below Friday’s low of
6090. Now, we can say that 6060 will be a good trading support. As long as it
holds 6060, we can hope for the expected rebound. What can be target on
rebound? It can be as big as 6220 levels. Do not short unless it breaks 6060
levels.
Shall I buy low or shall I sell the pullback? Please visit my ‘intraday
updates’.
S&P
500
(USA) – I can repeat again that as
long as 1768 saves it is a buy on S&P. It has again rebounded on Friday
from the low of 1772. I am considering this market for one rebound first and
then we can talk about the possibility of sell off towards 1710-1700. Right,
now a rebound should come. Recent lows are opportunity to buy near 1770 levels
with stop loss just at 1768. Negative close for January is destroying chart
pattern almost after more than one year.
Regards,
Praveen
Kumar
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