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.

Please visit our ‘intraday updates’ to get further updates or to take good advantage join paid services.

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.