Monday, 27 October 2014

27 October 2014: Nifty Elliott wave analysis: NIFTY may take a test of 8080-8100 levels if it manages to stay above 8032 levels. Technical support = 7990 and 7950.

You must read previous articles and watch the given chart carefully to understand this article completely.
For 27 October 2014: -

On 22 October 2014, FII Bought INR 7.54 crs and DII Bought INR 375.55 crs
Finally, it goes above 8000 marks on Diwali day. It has given a fresh hope to bulls. This rise has justified by charts and technical indicators too. It has broken a pattern of three waves down and something interesting must be coming.
Elliott minute wave ‘c’ emerges at 7730-7720 levels and now we have a good chance of hitting a higher wave. Well, now we are in a situation where we may see a possibility of challenging all-time high. In a clear cut wave sense, if nifty stand above 8032 then we may see a possibility for 8180 + levels by this week itself. As long as it is above 7950-7925 levels, we should not be worried much.
For today’s trading session, we will see technical support at 7980-7990 levels itself. As this run up is already by 300 points so we may see some choppy activity too before taking fresh move. In may make Nifty less interesting for some time. If it able to sustain above 8032 then we may see a possibility of 8080 levels.
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Strategy for Nifty October future – Most good trades are spoiled by gap up. If it comes with gap up of 30-40 points again then we may miss another opportunity for intraday. Logically, it is developing a target of 8080 if it manages to stand above 8040 levels. Technical support remains at 8000 levels. I avoided traded due to long weekend.

S&P 500 (USA) – I was expecting a range of 1960 to 1974 from past week itself. We got this range but there is no sign of any pullback yet. I believe that 1974 may offer some resistance. Now, suppose if it turn choppy here before fresh move then one must not act. Remember, 1965 came in straight line after breaking threshold of 1908. Things are fast and furious hence it is developing a condition of silence. 

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