Monday, 3 November 2014

NIFTY weekly analysis for 03 November’14 to 07 November’14


Elliott wave theory: It was predicted to expect rise towards 8100-8181 and a cross above 8181 could change wave structure. It goes in same way. We will start week at 8320+ levels. Next meaningful resistance or a figure to top may come at 8416. This is if wave 5 retrace completely of wave 1. Do not buy rise as we have many gap up in past 10 days. We have just three trading days in this week.
Market cycle: We can expect some more gain on Nifty this week due to global strength too. We have five weeks of dip and three weeks of rise so far.
Technical indicators: Key momentum indicators are on ‘no harm for bulls’ mode. Hence, I am still not worried about any big negative divergence.

Charting pattern: Here is something which can disturb bulls. Rise from 7720 to 8320 is full 600 points. It has no correction and it have many gap up. This makes market vulnerable near top. A top can come with at 8416 or nearby. Above 8416, a quick-fire rise can hit. 

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