07 November 2014: Nifty Elliott wave analysis: Global cues are saving Indian market after 630 points of run up. A possible top may come either at 8416 or before that. Caution advised at higher levels.
You must read previous articles and watch the given chart
carefully to understand this article completely.
For 07 November 2014: -
On 05 November 2014, FII Bought INR 1030.85 crs and DII Sold
INR 1204.63 crs
Welcome back after another Holiday. There is just a pause
after a run from 7720. I cannot name it as price correction as we hardly got
any negative close. Suddenly, momentum and intensity is huge for bulls. I had a
view that above 8182, Nifty may try to advance towards 8350 to 8416 levels to
form a short term top. We are in same levels but there is no sign of top yet. I
have started to add shorts. I am sure that I need to wait with these shorts to
be in comfort limit.
Based on wave theory we have resistance at 8416 on Nifty
which is only a meaningful technical resistance to talk about. It does not
matter if top comes at 8350 or over shoot above 8416. Short term chart is
heavily over bought in the absence of any price correction.
For today’s trading session, we may see opening on positive
note. We saw newer high from past four trading sessions in a row. Take a pattern;
previous day high is a resistance point. Hence, we have resistance at 8365 but
based on wave theory, only 8416 has a value as resistance. We cannot say as of
now if 8416 will hit or miss. Only message is that a short term top should come
near to 8416.
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Strategy for Nifty November
future – It may have
another optimistic opening today backed by strong global cues. Technical charts
are suggesting for resistance in the zone of 8420 to 8430. I just do not prefer
to trade long on rise now. I have started adding shorts on anticipated top to emerge
sooner. Just like past many cycle, top will come on the day when least people
will expect about it. No harm in ignoring indices for intraday.
S&P 500 (USA) – I am wrong on my correction call
before 2020 levels. Definitely I was not expecting this level of 2031 although I
have informed that above 2020 it can take a blow up for 2045. As of now it is
2032 and some more steam left in this market. The way it is up, it is showing
that as long as it is above 2000 we can expect many bulls’s attempt and bears
have no room to deal.
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