20 November 2014: Nifty Elliott wave analysis: Nifty has crucial support at 8290 for medium term. This may offer just another dead and choppy trading even at higher levels.

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

For 20 November 2014: -

On 19 November 2014, FII Bought INR 71.80 crs and DII Sold INR 491.26 crs

Was that a move to correct? No, it may not correct so easily. You can refer to the chart where we can see an expanding wedge formation. It is showing for support of 8350 levels. I have repeated many times that as long as it is above 8290 we can expect newer high. It has a life time high at 8455.45 levels yesterday but slipped form higher levels in second half.

Wave theory is still indicating consolidating and this consolidation is not giving any edge to positional traders. I opted shorting yesterday in second half from high but I do not prefer to forward any position. I am not saying that it cannot take a dip from high again but those will based on intraday chart.

For today’s trading session, we may see opening on flat note and then meaningful resistance will emerge at 8416 and 8456 on higher side. In the down side we have few key supports as follow – 8350 > 8320 > 8290 levels. My plan may be shorting in second half. Wave theory has no indication on daily chart but hourly chart may be interesting and it may show some weakness.

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Strategy for Nifty November future – We may see another positive to flat opening. Immediate trading support will come at 8400 and then at 8380 levels. If Nifty sustain above 8470 then we may see an advance towards 8520-8550 levels but that looks too far now. I am still suggesting to focus stock trade as opportunity may be very limited on Nifty unless is breaks 8320 levels.

S&P 500 (USA) – It has washed its gain after fed minutes. Think, it is again a dead flat close with small negative. This makes market dull again. As long as it is above 2020 to 2025 we cannot expect any significant weakness either. On higher side it may try to advance any higher levels which may not be predicated yet. I am not on trade on it and I have no immediate plan to take any position on it. I am expecting S&P to move higher till year.