13 February 2014: Nifty Elliott wave analysis: Nifty can see another day with resistance at 6100+ levels. Nifty is likely to slip towards 6000. Market looks tired in recovery now.

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

For 13 February 2014: -

On 12 February 2014, FII Bought INR 211.99 crs and DII Sold INR 261.96 crs

Firstly, Nifty is still feeling heavy near 6100 levels which is the most acting resistance in many rise we saw in past. Please refer to the given chart. Another important point is that small cap and mid cap indices were under performing yesterday. Broadly, this is not a good sign.

Yesterday evening economy data came. IIP came at (-) 0.60% which CPI came at two year’s low at 8.79%. This is little relief for market. Well, I can say that CPI is usually remains low in December to March months. It is positive to a limited extent.it may save us from initial dip.  

What is disturbing for this market is second half sell off. It is almost happening every day. Irrespective of opening it always tend to close near lowest point of the day. This kind of trading can turn to give the lower side breakdown any day and anytime.

It may try to test 6100 levels today also in opening minutes but it is not looking like to sustain. One must note that now global cues are not that supportive as past few days. Nifty will get support at 6050 levels. If it breaks then it can move towards next trading zone of 6030 to 6000 levels.

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Strategy for Nifty February future – I have quoted for the resistance at 6115. When it came to cross, it was not convincing me which I have updates on my intraday updates. Hence we went short. Now, if it comes at 6115 again then also my view will be same. This market can see tired move if try to rise. It does not matter how it open today. What matter most is how it can close today? Once again, a little higher opening and second half sell off is expected.

S&P 500 (USA) – we can see two important developments on S&P daily charts now. First is that yesterday’s high is just 78.60% of total fall. So top came at 1827, I strongly believe that it has topped out now. Secondly, it has formed a Doji pattern. I can still put my emphasis on 1809 support band. Once it breaks 1809 then we will see the occurrence of fresh wave of sell off. I can say that get out of all long and load yourself with shorts on US indices. Most probably, strongest bulls are close to change their mind now.

Regards,

Praveen Kumar