02 May 2014: Nifty Elliott wave analysis: Trading support has emerged at 6650. As long as it holds above 6650 we may see rebound to continue. Today is fifth day after four days of fall.

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

For 29 April 2014: -

On 28 April 2014, FII Bought INR 454.48 crs and DII Sold INR 6.46 crs

We got profit taking in last trading sessions. We got four straight negative closes far. We said that either it can rebound from 6700 or from 6650. Finally, we saw rebound coming with a low at 6656 which was nearer to 6650. Technical charts are another two important support but those drifted lower. One support is at 6650 itself and next is at 6580.

We have no moving average support before 6510 levels where we have 50 days moving average. This is definitely going to make market more volatile and random. Indian market has rebounded on political hope. Now it is considering some odd logics which comes with ‘if not’. What ‘if not’ a stable government comes. This is an obvious logic to throw weak bulls from the market.  

So far, I am not betting anything on election outcome as market will be more random and volatile before those. What I mean is that it will be too early for a trader to take scope for 16^th May.

For today’s trading, 6650 will offer good trading support. If it breaks 6650 then we may see fresh trouble and a possible low can come near 6580. So far, I am denying the scope for 6580. Rather, I feel that Nifty can come around 6750 levels. Today is last trading day of the week and fifth day from all-time top.

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Strategy for Nifty May future – SGX Nifty is hinting for a higher start above 6750. We have already bought the dip in last trading session. Now, I hope for this recovery to extend at least neat to 6780 levels. After which market will decide if it has to correct again or rebound further. I will not prefer to short this market near lower supports. On daily charts, this cannot be counted as strong for recovery unless it close at least positive for a day.

S&P 500 (USA) – S&P is breaking 1885 on higher side. It is minimizing the resistance effect of 1885. Charts will remains bullish as of now. It would have been great if it would have closed above 1885. So far, there is big concern. We may see higher levels. I still believe that we have scope to move higher. I would not surprise if it crosses 1900 levels. Remember, few weeks beck, we have quoted that close above 1900 will invite a move towards 1950. So, the time has come. Technical support will be at 1872.