06 March 2014: Nifty Elliott wave analysis: CAD cheer may bring Nifty more close to 6360 levels. Nifty will be decisive at 6360 resistance levels. If it fails to cross then it can see profit taking else it can hit 6420 too.

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

For 06 March 2014: -

On 05 March 2014, FII Bought INR 737.29 crs and DII Sold INR 201.85 crs

India’s current account deficit (CAD) narrowed sharply to USD 4.2 billion (0.9 percent of GDP) in Q3 of 2013-14 from USD 31.9 billion (6.5 percent of GDP) in Q3 of 2012-13 primarily on account of a decline in the trade deficit as merchandise exports picked up and imports moderated, particularly gold imports. This is also lower than USD 5.2 billion (1.2 percent of GDP) in Q2 of 2013-14.

Finance minister has done what he was constantly saying from past few months. I was also amongst non-believer on his claims. PSU banks hogged the limelight in last couple of hours of trade as finance minister P Chidambaram asked public sector undertaking banks to focus on recovery of bad loans, which are high among large corporate accounts. There are talks that few banks will sell their bad loans before 31 March.    

Election commission of India has announced all schedules for upcoming loksabha election. Final result will come on 16^th May 2014. Many market participants believe that positive mood will continue till that time. If it comes in favour of market favorite NDA alliance then a massive up move will begin.

Question is still same on technical chart. Will all this positive news takes Nifty above 6360 levels? This is something which is beyond the scope of speculation. Let it come by its own or fail by its own. If it moves above 6360 then it can even try to come near 6420 levels. Technical support will be at 6280 levels.  

I like to see what will come to stop global rally now. Whatever will come will be big. Those either come before weekend or global market will move further.

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Strategy for Nifty March future – It will take further gap up on unexpected positive CAD cheer. It has already closed at 6350. Next technical resistance will be at 6400 levels only. There will be nothing much to deal if gap up comes huge. We may have possibility of profit taking from higher levels. Technical support for this trading rise will be at 6300 levels. If global market turns weak anytime then we will see profit taking.  

S&P 500 (USA) – It has closed flat yesterday. It is still looking like to form a top in a day or two. Maximum upside potential can fall in the zone of 1880 to 1888. It is looking as last leg of rise and sooner market will hit with sell off. Every new all-time high cannot be buying. Although it is also true that it has broken massive 1850 marks to invite some big action so caution is also required in shorting. If fall does not begin in a day or two, then stop out from shorts. It needs to go below at least 1856 to confirm the fall but it is also too far right now.