14 November 2014: Nifty Elliott wave analysis: Repeating, top @ 8416 can get confirmation only if we see close below 8290. Today is 8th day of consolidation. Do not buy rise !!!

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

For 14 November 2014: -

On 13 November 2014, FII Bought INR 690.61 crs and DII Sold INR 738.24 crs

So far, 8415.05 is still a top. We saw a mini sell off yesterday. It is nothing great to observe but just treated as pullback. I was hoping for a move towards 8290 but it bounces in between. Today is 8^th day of consolidation and last trading day of the week as well. Consolidation and choppiness is global characteristic now a day.

European market has seen some correction as those are not on their all-time high. Any market which is near to all-time high has denied price correction. On chart, we have small rising wedge formation which has broken with yesterday’s dip. Take a note that Nifty has closed off the day’s low by last minutes buying. This is confirming that bulls are still willing to buy any dip.

Based on Elliott 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 8416 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 but this gap up may not sustain. It may be same as of past many days. Technical charts are suggesting that we still need a break below 8290 to say for any price correction. I can still say not to buy the rise. On higher side 8416 is only meaningful resistance. As long as it is above 8290 it may be in race to test 8416 again and again.

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Strategy for Nifty November future – It will take another opening on positive side. It will face resistance at 8420. After 8420 we will get resistance at 8450 only. In the down side it will get support at 8350 and 8320 levels only. I do not think that higher levels can sustain without any price correction but today is 8^th day of consolidation with Nifty spot still running near 8350.

S&P 500 (USA) – It is irritating now. Neither it can give you a joy of all time high nor is it falling. Practically, it did nothing with another 0% close. It has just crossed 2045 to fulfil chart and then slipped. It may not be a trade as of now with just a waiting mode for next move. Based on Elliott wave chart, we must see a short term top at 2045 but top is not confirming yet. Alter view is that cross above 2045 will generate a pop up target at 2145 by Christmas.