18 November 2014: Nifty Elliott wave analysis: Finally, it moved above 8416 and as long as it is above 8416-8400, we may see another advance. May be 8500 is next in talk!!!

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

For 18 November 2014: -

On 17 November 2014, FII Bought INR 656.37 crs and DII Sold INR 247.86 crs

It hit a high at 8416 and then a low at 8320. After that we saw another fresh move up for a new all-time high. This is not entirely unexpected. When it refused to break 8290 then only I have quoted that 8416 may see overshoot. What we saw yesterday was an overshoot of technical levels. I stopped out from my partial short too after taking partial profit in dip. Equally, I am not long yet on index.  

US indices or any other global indices, it has denied technical correction. So far, it is extending its rise even after technical resistance. Nifty is moving without correction from 7723 levels itself. So far, now it has moved by 700 big points. We saw only some time consolidation which I never say as correction.

Based on Elliott wave theory we had resistance at 8416 on Nifty which was broken on higher side yesterday. It was expected and mentioned for possible overshoot. A high came near to 8438 levels.

For today’s trading session, we may see opening on flat note and then meaningful stiff resistance at 8450 and then straight at 8500. Never short anything as long as it is trading above 8399-8390 levels. Even 8416 may act as opening support. I am not denying the possibility of 8500. Finally, as long as it is not breaking 8290, medium term direction is also up.

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Strategy for Nifty November future – It will take another opening on positive side. It will face resistance at 8450-8470 only. In the down side it will get support at 8430 and 8400 levels only. Suppose, if it sustain above 8450 then we may see a possibility for move higher towards 8500-8520 levels. I may not open to trade long if it goes below 8400. Well, these are technical view but I do just not prefer to trade Nifty. Why to break head on choppy index when we have so many stocks to trade.

S&P 500 (USA) – Once again, it has traded in a straight line and closed with small green only. Technical charts are suggesting for time to stop out for shorts also. I have already exited yesterday when futures were trading in red. I still believe that 2045-2047 is a resistance but fact it that it is not turning weak yet. I will go in neutral mode now without any position. Pure wave pattern is suggesting that we can move forward to higher-high pattern with next possible target of 2145- another 100 points rally!!!