10 November 2014: Nifty Elliott wave analysis: A top is still on hunt but we are getting sign of sluggishness only. Technical support 8290 and technical resistance is 8416.

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For 10 November 2014: -

On 05 November 2014, FII Bought INR 1030.85 crs and DII Sold INR 1204.63 crs

We have not seen any great sign of pullback yet. It came in the last trading session but last hour rise was a neutralizer. So far, Nifty has seen a high at 8365 last week which will also act as meaningful psychological resistance. Above which we may add a possibility of further rise towards 8416 levels. I derived 8416 from a different wave pattern but I will still stick with it as it’s based on price retrenchment.

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 again. I believe that higher opening will offer resistance immediately. If it goes above 8366 then we may see some more rises but it need to sustain tall above 8366 first. Time for correction has already come now it is the matter of time before correction. On Friday, we quoted a support of 8290 and we saw a dot low at that points itself.

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Strategy for Nifty November future – It may have another optimistic opening today as indicated by SGX Nifty. It may open in the range of 8410. Immediate resistance will emerge at 8430. Cross above 8430 may offer some more rise. For bears, Nifty November future needs to sustain below 8320 first which is too far right now. Time for correction is ‘ON’ and so I will not prefer to trade long. It is better to be on side line if it remains positive.

S&P 500 (USA) – I have already quoted for a target of 2045 on rise. Top can be either at 2045 or may be before that. It may be named as microphone pattern based on which I was bullish in the zone of 1850. If that was a support then 2045 will equally a tougher resistance. As of now, break below 2010 will also confirm the possible dip. It must come by this week itself.