06 June 2014: Nifty Elliott wave analysis: In spite of gradual resistance, Nifty may move 40-50-60 points more before correcting. As long as it holds 7450, we have no reason to expect profit taking. Technical resistance – 7505-7563!!!
You must read previous articles and watch the given chart carefully
to understand this article completely.
For 06 June 2014: -
On 05 June 2014, FII Bought INR 1368.97 crs and DII Sold INR 425.79
crs
FIIs bought heavily in cash market in past few days.
Yesterday they are net seller on index future with amount INR 889 crs. Does
this indicate that they are shorting now? Well, I never try to conclude much
about price based on money flow. Money flow is always stronger and it is
related to economy view. What pays us in stock market is only ‘price’.
I have quoted for resistance above 7450. We are in same zone
and it has attracted short covering to some extent. Big fight will begin today.
We need to note a factor very strongly that new government is in action. They are
taking few decisions which have propelled bulls in the market. This will be
encouraging factor for long term.
Small cap and mid cap indices are still performer of the
market. There are many stocks in this pack which are moving without any great
base. Investors must be very cautious on selection of stocks. If you are trader
or investor, you may be tempted and it is also true that those odd stocks give
quick money.
For today’s trading technical support will be at 7450 and
then at 7400 levels. On higher side, it will face resistance at 7505+ levels.
There will be a day when mid cap and small cap indices will underperform Nifty.
Once, under performance of mid cap and
small cap starts then we may conclude for top.
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Strategy for Nifty June
future – Nifty June
future may open near 7530 levels. Good part is that it has pushed bears back
and marched ahead. For today’s trading majority of moves will eat by gap up. It
does not matter if it comes small or big. If I have a choice then it is a buy
above 7490 for 40-50-60 points move on higher side. Top will be dangerous and
no one knows where it is.
S&P 500 (USA) – It has closed stronger than ever
with intraday rebound of 18 points. I still believe that top is near and it is
just the matter of time. Sell off can
begin any moment now. Sooner near to 1950, we will see a top formation. We saw
many technical indicators which are giving indications for price correction. Be
on the side line and prefer to wait for a top to emerge. Technical support for
the day is at 1935 and then 1922. Is market going to miss summer sell off?
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