20 June 2014: Nifty Elliott wave analysis: Panic sell off will begin if Nifty breaks the range of 7485-7470 support. Trading direction will be side wise if market does not give up.

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

For 20 June 2014: -

On 19 June 2014, FII Sold INR 420.51 crs and DII Bought INR 117.81 crs

Indian market remains in a jitter mode after giving up all gaps up in just one hour of trade yesterday. Have a look on the given chart; it is breaking daily support line.  I have already given a support of 7485 based on gap which is visible on hourly chart.

Now, Nifty has 20 MDA at 7473 levels. So the range of 7485 to 7470 will be most crucial and decisive support in downside. If it breaks this range then we can see panic sell off which can give range of 7400 to 7300. Take a note that, Elliott wave trend is already giving same target from past few days.

Now, let us concentrate the charting pattern. Based on Elliott wave theory we got a top at 7700 levels. If I draw it for target then we should get minimum of 7400 levels which can be violent in the area of 7400 to 7300. Hence, I believe that Nifty can enter in the zone of 7400-7300 before giving fresh rebound.

For today’s trading technical support will be at 7510 and 7485 levels and resistance will be at 7570 and 7600 levels. I must add that from lower levels, one must wait for the break of 7485 to add fresh short. Else it will be better to short from higher levels, near to 7600 to add short.

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Strategy for Nifty June future – Nifty June future may open near 7540 levels as suggested by SGX Nifty. Immediate trading support will be at 7510 levels. Break below 7510 will cause the fall of immediate 40-50 points. On higher side 7580 to 7610 will be zone of stiff resistance. It seems that we stuck in the side wise direction now. This will not remain side wise if it breaks 7500. Today is the last trading session of the week. Let us see what is coming.  

S&P 500 (USA) – S&P has closed above 1956. It is on new life time high again but not running with rapid euphoria. As long as it is above 1945, this up trend will remain in race. We are likely to see the range of 1970-1980. There is nothing great to add as trend will be side wise with small positive or negative. Although, at new all-time high bulls have upper hand. Let us see what can come before weekend.