01 December 2014: Nifty Elliott wave analysis: Market to take more cues for upcoming RBI monetary policy. Technical support for Nifty comes at 8550-8536 levels.

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

For 01 December 2014: -

On 28 November 2014, FII Bought INR 935.86 crs and DII Sold INR 439.31 crs

Banking stocks has pushed indices on another new all-time high. So a new all-time high is 8617. Right now market men will wait for the outcome of upcoming RBI’s monetary policy review which is scheduled to come tomorrow. After sharp fall in crude oil price, market is taking it as guarantee for rate cut. It is my anticipation that market knows what is coming. I believe that market has discounted 25 bps cut in CRR at least. Outcome may be better than that. If not then we will see some panic reaction tomorrow.

Well, so what should we expect today? Before an event, I am expecting silence in market. A level of 8536 has acted as resistance earlier and now it will act as support. So even if intraday correction comes then also it may not be bigger below 8536. I suggest dealing in stocks only and prefer to deal in cash market only.

For today’s trading session, we will have intraday trading support at 8536 levels. Friday’s high of 8617 will be only meaningful resistance. If rise extend further than it can even challenge 8700+ levels. Nifty moved by almost 900 points without any meaningful correction. Be cautious if you want to deal banking stocks.

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Strategy for Nifty December future – SGX Nifty is showing for opening at 8620+ levels. Immediate technical support will come at 8590 levels. As long as it is above 8590 we cannot expect anything for correction. Market will take more hint for RBI policy today. If Nifty Future trades below 8590 then do not stay long.

S&P 500 (USA) – I said to watch for reaction at 2075 levels. It hit 2075 levels as a dot and then slipped. Right now, index futures are trading in red. I am still not advising trade on it. My study is still suggesting me that index may not come down in the month of December unless something unexpected happens. What I mean to say is that a possible correction should be news based. It may not come due to technical reasons. Let us see how much reaction can be offered by market at S&P @ 2075 !!!