27 November 2014: Nifty Elliott wave analysis: Derivative expiry may be either too dull or may be too wild to trade. Key support for Nifty is 8430-8416 so far. Resistance for Nifty – 8500-8536 !!!

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

For 27 November 2014: -

On 26 November 2014, FII Bought INR 181.46 crs and DII Sold INR 314.64 crs

Well, we are finally on the day of November month expiry now. This is my least preferred day to trade. We have secular up trend for whole month without any meaningful correction. It is still hovering on higher side. I have already said yesterday that 8500 and 8536 will act as stiff resistance. While on lower side, 8430 to 8416 will act as trading support.

I must say that this is not a market where we can get any short to medium term trend. I will not prefer to be active for today’s trading session. It can either be too dull to trade or it can be wild if turns volatile. We have seen support from almost all sectors in past few weeks. We have bearish engulfing pattern but a confirmation will come only on close below 8416. Will that close come sooner? No one can answer.

For today’s trading session, we will have intraday trading support at 8429 to 8416 levels. Expiry can make things wild. If it breaks 8416 then only we can have confirmed and meaningful dip from current levels. If it saves on lower side then it may not be good expect anything good. On higher side, above 8550, it can challenge for 8536.

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Strategy for Nifty December future – It may open around 8550 levels. It has key support at 8480 levels. On higher side 8600 is a decisive resistance. It will not easy to find moves between the range of 8480 to 8600. Today is derivative expiry and I am suggesting a holiday for index trading. We may not have anything good for trading as of now.  

S&P 500 (USA) – This is so dull. We saw another close with small positive. I like to see reaction at 2075. If there is no pullback then it may try to move towards 2100 levels. From 2000 levels to 2073, it took 20 trading sessions so far without any correction. Today will be 21^st trading session. It has spent 32 trading sessions from the low of 1820 levels. Take a note that 34 is also a Fibonacci number and 21 is also a Fibonacci number. If it does not correct in 1-2 days then this rally can extend for 21 trading sessions more. Think, it may not correct till year end.