21 October 2014: Nifty Elliott wave analysis: We can expect consolidation and smaller trading range. I suggest trading less in these days. Support for NIFTY – 7850-7825 !!!

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

For 21 October 2014: -

On 20 October 2014, FII Bought INR 1040.08 crs and DII Bought INR 166.11 crs

It was just a gap up then turned dead. Market men go on Holiday mood. We have derivative expiry next week. After testing 100 DMA, Nifty is showing relative strength which was already suggested few days back too. I am expecting this rise to extend more. Key support is at 7850 to 7825 levels. If I have to be worried then I should be worry about trading range which may be smaller compared to past few days.

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. I hope that it will maintain support at 7850 to 7825 and then it can take a final move. I am hoping for optimism on Diwali day which can give 8000 levels too.

For today’s trading session, I am expecting a flat opening. Immediate support will emerge at 7850. On higher side, we may expect levels of 7925 levels. It may try to generate momentum beyond the range of 7850 to 7925. Let us see when it breaks.

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Strategy for Nifty October future – Opening may come in the range of 7900 and then we may see some long dead hours. Immediate technical support is at 7880 to 7870 levels. I am waiting for some gap fill which came yesterday morning. We may have limited opportunity to trade long hence it must come from lower levels. If not then it will be better to ignore.

S&P 500 (USA) – I have said for 1908 yesterday and here it comes so close. It is great index. Technically if it manages to close above 1908 then we may expect levels of 1925 too. Here is some caution. Recovery goes almost on straight line so if it have to change a direction, this is the levels. Above 1908, it will deny moves for bears. If it fail at 1908 then we may see fresh wave for weakness.