12 November 2014: Nifty Elliott wave analysis: It spend five trading sessions in a dull note near 8350. Unless it breaks 8290, it will be in race for 8416.

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

For 12 November 2014: -

On 11 November 2014, FII Bought INR 458.04 crs and DII Sold INR 516.98 crs

Yesterday was also a waste day for Nifty which ended near 8350 for fifth day in a row. It was just so boring. This boring market has developed an interesting small diamond pattern on chart. This is also not remarkably big. It is suggesting that we may go near to 8416 levels which were mentioned last week itself.  

It is not that only Indian market is denying correction. No single global index goes under any kind of correction. It give me a sense that whenever correction comes it will be global phenomenon. I have already quoted few days back that based on wave theory it turned to wave ‘5’.

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. Once again it will retrace after higher opening. Key support will come at 8290 levels. I would be more confident on correction call if it breaks and close below 8290 levels. Stiff technical resistance will be around 8416. A 50 points diagonal may hint for 8416 levels to come now.

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Strategy for Nifty November future – It will take another opening on positive side. We have seen the reaction of higher opening in past few days. It opens higher then used to take a dip. In second half it used to recover to make day flat. This cycle needs to end to get a fresh up wave. Technical support will be at 8320 and resistance will come at 8420 to 8430 levels.

S&P 500 (USA) – S&P moved from 2020 to 2040 in five trading sessions. These are also as boring as Indian market. Nothing much has left. We should not expect fresh up wave without any price correction. I still feel that we should see at least one down wave before moving higher again. In my view 2045 is still a stiff resistance. For bulls, 2020 will be a decisive support. It seems that bulls will not give up as long as it is above 2020. I will stay short with my stop loss at 2045.