04 March 2014: Nifty Elliott wave analysis: Asian market goes on pause after Ukraine crisis. Technical support for Nifty is only at 6183-6170. Be cautious as this sell can intensify if breaking lower!!!
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For 04
March 2014: -
On 03
March 2014, FII Bought INR 198.53 crs and DII Sold INR 1566.31 crs
So far,
there is no soft solution for Ukraine crisis. It is looking like global market
is paying heavy price of one man’s ambition and rigidity. I need to accept that
Indian market has shown great resilience in odd situation with massive buying
support from domestic institutional investors.
Asian market
is not pause after yesterday’s sell off. I cannot say about the crisis over
Ukraine. It is still exploding situation. It has geo political importance. We need
to thank to the optimism as contingency effect has not spread after 10% sell
off in Russian market.
From my
experience I can say that in panic mode, only moving average support works. So,
50 DMA is at 6183, 100 DMA is at 6170 and 200 DMA is at 5987. It is likely to get
some support at 6183 to 6170 zone.
If panic
continues with war converting to reality then be prepare to see 6000 levels by
this week.
Charts are
not changing shapes so far unless it closes below 6183-6170 support band. I am
expecting a flat opening. Thereafter market will take direction from news flow.
Technical sell off will begin if it breaks 6170 which is looking little too far
but not impossible.
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Strategy
for Nifty March future – There is no point
to say that look on SGX Nifty right now as it can also fluctuate with news
flow. It is looking like 6295 will act as stiff resistance for short term. Intraday
support is at 6220. If it breaks 6220 then it may test levels near 6200-6190
levels. Trading resistance will emerge at 6265 levels. I do not think that
higher levels can be safer to trade.
S&P
500
(USA) – It may avoid panic sell off
as long as closing above 1840. Meanwhile we got a threshold now. If it break’s
yesterday’s low of 1834 then it will invite selling. Global situation is still
alarming. It can take a swing any time depending on news flow. Technical set up
on charts are not as bad so far as news flow. Hopefully situation will clear by
tonight or in two three days’ time. One close below 1834 will cause further
sell off and that will be technical in nature.
Regards,
Praveen
Kumar
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