13 August 2014: Nifty Elliott wave analysis: IIP and CPI inflation shocker may give some soft opening. As long as it is above 7680 it holds scope for the formation of fresh up wave. One intraday correction is possible (with support @ 7680) !!!

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

For 13 August 2014: -

On 12 August 2014, FII Bought INR 370.83 crs and DII Sold INR 39.78 crs

June IIP came at 3.40% again 5.0% last month which is much below market estimate of 5.80%. On other hand July CPI came at 7.96% against expected 7.40%. So, practically both these figures are bad for market. Will it be rally bad?

I give importance to 20 DMA and 50 DMA and their respective slopes. From current levels of 7727 on Nifty, even 50 points dip may also go for recovery from bottom. It has generated desired momentum again. Above bad data may give us levels of 7700 or nearer in opening minutes. It is almost 200 points from bottom of 7540 and so we need one pullback which may come today but that also is a conditional move.

What has happened in past few days? We saw a dip below 50 DMA and then formation of hammer pattern to invite rise. Then we have two strong gap up back to back. This gave us bullish view with momentum. It should be like bulls will buy every dip.

For today’s session, I may opt to buy dip as long as it holds above 7680 levels. Remember, if this momentum sustain then it is confirming short term and intermediate trend as up again. Can it break 7840 again? I cannot deny. It has one resistance at 7750 and then at 7800 before 7841. Strong support will be at 7680 levels.

Please visit our ‘intraday updates’ to get further updates or to take good advantage join paid services.

Strategy for Nifty August future – Nifty August Future may open soft with negative 20 points as suggested by SGX Nifty. 20 points down does not mean anything. It is good so far. As long as it is above 7700 we cannot name it any meaningful dip. I want to buy dip but my stop cannot be below 7690. If I get it near 7710 then I will consider buying. Below 7690, it can retrace many part of past two days of rise.   

S&P 500 (USA) – S&P closed negative but mostly remains dull on chart. S&P chart is not like Nifty which used to get many gap in opening. Technically 1945 is a resistance and 1925 is technical support. Now, we need to see few minutes’ trade below 1925 to see another drag towards 1910-1900 odd levels. As long as it is above 1925 I can say that it is favouring bulls.