20 October 2014: Nifty Elliott wave analysis: 100 DMA support and new MODI wave can give fresh air to this market. Do not add fresh long if it goes for wild gap up as shown by SGX Nifty.
You must read previous articles and watch the given chart
carefully to understand this article completely.
For 20 October 2014: -
On 17 October 2014, FII Sold INR 1430.03 crs and DII Bought
INR 737.31 crs
This fall goes on halt near 100 DMA support and this is a
good part for bulls. We unwind all shorts and goes long. Unfortunately we book
our Nifty long on Friday itself after some sell off in final hour. Well, it is
still better than having shorts.
Elliott minute wave ‘c’ emerges at 7730-7720 levels and now
we have a good chance of hitting a higher wave. This rise can extend up to
7950-8000 levels. Disappointing thing is that we are going to see a wild gap up
today which will eat a major long opportunity.
Can we gain strength before Diwali? There is no clear cut
sign yet. Historically, Indian market used to be sluggish before Diwali. Most
of the time, real decisive strength used to come after Diwali session which
used to continue till last of December. If weakness comes after Diwali then
also, it used to last longer. So probably, based on market cycle, we are in
indecisive zone for short term. It is looking like for some upside before
Diwali now.
For today’s trading session, I will just not trade if it goes
opening as SGX Nifty is suggesting. 7900+ levels will just say to wait for a
dip after higher opening. Immediate trading support after opening will come at
7825-7850 levels.
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Strategy for Nifty October
future – I can just
break my head as I unwind my long at 7820 on Friday’s trading session in panic
sell off. SGX Nifty is hinting for opening in the range of 7950. If this comes
true then we have nothing more to trade. Immediate support will come at 7900
levels.
S&P 500 (USA) – I have already predicted for
bounce. Recent dip below 1850 has trapped many forced and tempted bears.
Technical charts are suggesting for a target of 1908-1915 level. We will see
support at 1875 levels as support. I will opt to buy in dip for coming few
days. This week will favour either bulls or it may go at consolidation after
recent dip.
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