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.