19 September 2014: Nifty Elliott wave analysis: A day after mammoth rise should be watched for follow up buying. As long as it is above 8080 it is under full grip of bulls. 8143 and 8181 may be under test again.
You must read previous articles and watch the given chart
carefully to understand this article completely.
For 19 September 2014: -
On 18 September 2014, FII Sold INR 9.57 crs and DII Bought
INR 84.45 crs
Above figures by FIIs and DIIs are for cash market and it is
just not able to explain a rise of nearly 500 points of Sensex. Well, this does
not matter. Rise is rise weather it came by buying or short covering. I feel
that majority of rise came by short covering hence follow up of trade will be
key.
On charts, we have two meaningful points. One is at 8143 and next
is at 8181 levels. As long as it is above 8080, it should try to break previous
all-time high of 8181. It is advisable to buy every dip as long as those
sustain above 8080 levels. The good point for bulls is that we have almost a
good defines support at 8080 levels which has formed due to previous few choppy
trading sessions.
For today’s trading session, opening may come flat. Technical
set up has changed a lot with yesterday’s massive rise. Short term support of
20 DMA comes at 8030 now. We have trading support at 8080. Big question is –
Shall I buy dip if comes? If yes, then also protect with stop loss at 8080 kind
of levels. I will try but I will not try for big. 8080 should be treated as
stop loss for all long.
Spoiler for global market can be just one big factor –
Currency market. Almost every currency of emerging market is again showing fear
on chart against USD. What can be good for US market may not be good for
emerging market.
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Strategy for Nifty September
future – Has it given
time above 8010. No, not at all. It was in hurry from 7980 to 8070 in just 2
minutes. So, practically, it was not possible to enter in between. I will
prefer to buy the dip around 8100 levels and I will consider 8160 as first
hurdle for bulls. Cross above 8160 will give us 8200 levels.
S&P 500 (USA) – Well, S&P closed near day’s
high point. High point was 2012.34, a level which is in striking distance for
2013, mentioned levels in my previous article. What is next? If I am reading
this chart corrected then S&P can see a big 3-4% rise from 2013 too. I
cannot suggest exact levels but it can be somewhere either at 2050 or may be as
high as 2080 before next corrective phase.
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