02 April 2014: Nifty Elliott wave analysis: RBI policy goes as ‘no event’. Now market will look for quarterly number. As long as it is above 6675 we can expect 6800 too. Technical support is at 6640 for short threshold.

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

For 02 April 2014: -

On 01 April 2014, FII Bought INR 385.66 crs and DII Sold INR 247.88 crs

Nifty has closed positive for nine trading sessions in a row. If 6500 on Nifty was overbought then, what can we say about 6730? It is heavily overbought but there is no single trace of pullback. Even threshold level for pullback is too far which is at 6640.

Even if we reduce time frame then also as long as it is above 6675 there cannot be pullback. VIX is high, NIFTY is heavily overbought but nothing can stop bulls from buying. If they are buying they are buying strongly. It is a ‘hope rally’ which has extended too far.

Have a look at global indices too. When NIFTY goes overbought, S&P goes on breakout. It is turning a cyclic phenomenon in favour of bulls. Things are too much but it is not stopping and now focus will shift on upcoming quarterly results.

RBI comes with hawkish comments which were against market expectation. Still rally extended. “Will this market ever fall?” Market will fall on the day when least number of people would expect about it.

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Strategy for Nifty April future – SGX NIFTY is showing that it can open near 6770 levels. As long as 6700 holds we cannot see for pull back. At new all-time high it always looks higher only. In that case it can try to achieve 6800 levels too. I strongly suggest ignoring index trading at these kinds of levels. Use levels for reference for other trades only. These levels are not suitable for buy without technical correction.

S&P 500 (USA) – It finally moved above 1884 and closed on new all-time high. Dow Jones is also on striking distance of 16600 levels. well, if this break out is really coming then US market is all set to add further 3-4% rally or may be even more. Close above 1884 shows for a move towards 1950 and then maybe even 2000 levels. It may seem odd but charts always indicate such elevated targets on big breakouts. This is one such. S&P 500 never broke 1840 and rally continues. As long as 1840 holds, S&P will not fall. As long as it is above 1885 it will prepare for 2000!!! It would be better if Dow Jones would have closed above 16600 levels.