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.