17 November 2014: Nifty Elliott wave analysis: 8416 is still a resistance but we can say it as a top unless we see a close below 8290 levels. If not then it can overshoot above 8416 also!!!

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

For 17 November 2014: -

On 14 November 2014, FII Bought INR 645.90 crs and DII Sold INR 517.51 crs

You take wave chart or you take technical chart, one thing is clear that we have spent eight trading sessions here and there at 8350. It is almost half a month. We predicated for a top at 8416 and we got that. Still I am unable to see clear sign of any significant correction. I must say that clear sign of correction will come only and only below 8290 which looks too far for now.

US market or European market, both are higher but near to resistance and those are giving some sign of correction. I must say that those are also not correcting to any good extent. It looks like ‘denying correction’ is global phenomenon. This generally happens on some strong money flow or some reason of money flow.

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 flat note and then meaningful stiff resistance at 8416. Take a note that I cannot say that 8416 is top for now. Let us see how week begin. This is crucial week. I still hope for pullback from higher levels and strongly suggesting to avoid long on index at least.

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Strategy for Nifty November future – It will take another opening on positive side. It will face 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 I will take 8450 as stop loss for short on the hope of correction. Correction has denied so far.

S&P 500 (USA) – Practically it is trading in a straight line. I still believe for stiff resistance at 2045 levels. One correction needs to come. We may see levels of 1990-1980 before any fresh up move near to Christmas. We saw five close in a row near to 2040 levels itself. This is making trading dull at all-time high. So far, I advocate for holding short but stop loss must be small and just above 2045 levels ot above 2046 levels.