21 November 2014: Nifty Elliott wave analysis: Now even 8350 is also acting as support before 8290. This is limiting possibility of correction. Just another dead day ahead!!!

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

For 21 November 2014: -

On 20 November 2014, FII Sold INR 477.15 crs and DII Bought INR 101.62 crs

Now 8350 is also acting as strong technical support. I still believe that 8290 is actual support for short term. Nifty has spent time above 8290 for 12 trading sessions in a row. Practically, market did nothing in past 12 trading sessions and it is still in consolidation. It seems that if it breaks 8350 then we may expect a small impulsive selling to hit levels near to 8290. So far, it is not looks easy.

Based on key momentum indicators like MACD I am getting a hint that a sell signal may come sooner. We have small problem here, on S&P 500 chart, same MACD has denied sell signal from past many trading sessions. Let us see what it can give. It will clear by next week only.

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 8430 then we may see an advance towards 8470 levels. Now, shorting rise can hit above 8470 as we will enter in derivative expiry week. Yesterday’s low of 8371 will play as a key support.

S&P 500 (USA) – It hit a low at 2040 and rebound to close at day’s high. This is magnitude of bulls. I can still say that it is tougher to expect any meaningful correction on S&P now. MACD is just showing peculiar movement with topping sign but not giving sign to sell. I can quote that 2025 to 2020 levels are strong support. As long as it holds above 2020 then we can expect rise and rise only. I have no trade and I have no plan to trade on it.