13 May 2014: Nifty Elliott wave analysis: All set to another high fly start after exit poll. Prepare to see 7200 marks in best case. Technical support is now at 6950 levels. I just prefer to hold my long trades rather than adding more at high.

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

For 13 May 2014: -

On 12 May 2014, FII Bought INR 1217.95 crs and DII Bought INR 92.56 crs

It was excellent Monday when Nifty closed above 7000 marks. It took almost 6.50 years to move from 6000 first time to 7000 first time. Nifty has crossed 6000 marks for the first time in December 2007. Now, after market hours, exit poll result came per expectation. Almost everyone is showing a clear majority for NDA.

I have quoted 254 for BJP on Friday and I have explained in my weekend article with complete details. If I am right then NDA will surely come with comfortable majority. If I have to update my projected numbers then it will go in favour of NDA to large extent. Believe me BJP number will be higher than 254. I will not surprise if it came near to 272. This is perhaps my sentiment. So, mathematical study is still justifying for 254.

I have long from 6685 which I am not ready to give up. We will see another mammoth gap up today. We may have some profit taking but I have no reservations from taking risk for 16^th May 2014. We saw diesel price hike after poll ended. So, good news for market is just beginning.

What can you expect for 16^th May 2016? Well, history has yet to make. When I projected 254 seats for BJP, I have not given any account for NaMo wave. If this wave is really there then number for NDA can be far bigger than 300. Well, we cannot count emotions on Mathematics formula or survey.

Final quote is, if NDA goes in the zone of 300-320+ (which is not impossible), then you can expect fastest 1000 points travel for Nifty. Yes, we may need to bet for even 7800-8000. This rally will at least continue till 25 May 2014. Now, this is not the time to be contrarian trader who can bet for bears. One will simply bleed if one does.

How does wave looks like? This is fifth wave extension. This generally comes with extremely rapid pace. Have a look, if we compare this to third wave. 100% @ 7325, 127.20% @ 7569, 161.80% 7878

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Strategy for Nifty May future – We are going to see another higher opening. There is no better buy signal than this kind of back to back extremely higher high at new all-time high. Just count how many high I typed. I am expecting another stronger start. It can be as bigger as 100 points. Technical charts are just saying buy and hold. I am just holding my one stop long at 6685 and not doing any further experiment.

S&P 500 (USA) – I still protect myself using 50 DMA support. When it was looking like to break, bulls came and bring it very close to all-time high. So, a new all-time high is still not out of race. Today will be a day when it can make its history.  I have quoted for this rise from the bounce of 1803. Now what is coming next? Let it go higher and top will emerge at 1915 to 1930 levels before ‘May or summer sell off begin’. I am expecting this to happen sooner, may be this week itself.