11 April 2014: Nifty Elliott wave analysis: Global sell off will spoil bull’s party in Indian market. Technical support is at 6750 and then at 6700. We may have point to buy from lower levels. Words of caution must go stronger !!!

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

For 11 April 2014: -

On 10 April 2014, FII Bought INR 342.75 crs and DII Bought INR 13.45 crs

6819, that’s what we saw yesterday as high and then we got sell off in just last 30 minutes. Still, there is nothing which we can say as a sign of warning except over bought ranges. Now we got severe sell off in US market last night which was expected. I have added few shorts in this anticipation.

VIX comes very close to 30 levels. In general, this kind of VIX levels is known for bottom but we are getting top. Pure charting suggests that as long as 6700-6675 holds on closing basis, this market can bounce. So the big question is will we go below 6675 in global sell off. We are going to get many answers today.  

It is likely to open with gap down now. It may be of 20-30 points. Last year also I have said about summer sell off which is a much known cycle. It does not mean that summer sell off will come from exactly 01 May. Few were crying from 01 May last year saying it is not coming, it is not coming. This kind of sell off may come on approximate basis.

If correction comes in Indian market then it will be good. Logically, pre-election sell off can make a room for result day rally. Every single Asian market is down by more than 2% except China. From past many weeks I have forecasted for sell off in NIKKEI. It has broken 14000 levels and preparing for massive sells off.

Today is last trading day of the week and we have just three trading days for next week. For today, Nifty will get support at 6750 and then at 6700 levels. Trade in stock specific way and pick weak stocks for shorting. Do not worry; there may be too many short candidates.

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Strategy for Nifty April future – I have added short on Nifty Future yesterday and carried. My expected target is 6750 and 6710. Once those come then I will book and will to find a point to buy from low. IIP data will come after market hour and our market will open directly on Tuesday only. It involves high in holding position. Nifty April future will open near 6780 and then it will get support either at 6750 or at 6710 only. If you do not have short then do not add short at lower levels. Indian market is clearly not as weak as US market.

S&P 500 (USA) – This is what I was expecting. A bounce towards 1870 and then another brutal sell off. Finally, S&P 500 closed below 1840 after a long time. It is just the beginning of first big correction of recent time. It is almost confirm on technical chart that it can finally end up somewhere near 1730-1740 zone. We have some mini pause near 1800 but that is also little far from here. It is looking like a summer sell off. It just came little early. Now technical resistance will be at 1840+ levels. Whole global market will start bleeding in very bad way very soon. We have already added short on S&P yesterday itself.