04 December 2014: Nifty Elliott wave analysis: As expected 8500 holds and market took a soft positive close. If it stay above 8550, then only can expect fresh small rise. Will it tired now on rise?

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For 04 December 2014: -

On 03 December 2014, FII Bought INR 391.07 crs and DII Sold INR 157.23 crs

As expected it has moved higher after taking support near to 8500 levels. As long as it holds above 8500 levels, I like to add a long from near to this level. If it takes out 8500 for once then only I will be think about price correction to go near 8400 levels.

There are many short term corrections which has denied by market so far. A move from 8623 to 8505 is just more than 1% correction which came. In my weekly analysis, I have said that 8536 to 8500 will act as immediate trading support. So far, we are just in same zone. Can I expect Nifty to hit 8600? I see such chance but broadly today’s market may be dull in term of index. We have just 35 points of range yesterday.

For today’s trading session, opening is expected to be little higher. If it manages to stay above 8550 then I have a sense to trade long side for a move towards 8600. In the downside, as said 8500 is a key. Below 8500 we will see levels of 8450. Be stock specific for today’s trade. Index may not give you chance to fulfil your appetite.

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Strategy for Nifty December future – SGX Nifty is saying for opening above 8590 levels. I will wait for more. If it manages to stay above 8600 then I will prefer to take on long side. It will be a useless instrument to trade if it remains in the range of 30-40 points. 8540 is looking as key support. I will wait for more intraday signal to take positions.

S&P 500 (USA) – So far S&P has moved as the way I was expecting. Technical charts are suggesting that it can move forward towards 2100 levels. It looks tired but it is not a compulsion that tired market cannot move higher. One must note that historically December is known to be a good month for equity price. I am taking 2050 to 2035 to be a good support for short term. I am avoiding any position on this index as at least one short term correction is due so far.