05 December 2014: Nifty Elliott wave analysis: Up moves are still justifying as long as it hold above 8500 levels on Nifty. If it breaks 8500 then only we can hope for meaningful price correction.

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

For 05 December 2014: -

On 04 December 2014, FII Bought INR 474.00 crs and DII Sold INR 585.98 crs

Once again we saw support at 8500 levels and then a move towards higher levels. It is just confirming a view that stream left in the market. Hourly charts are giving hint for a move towards 8680-8700 levels as long as Nifty holds above 8500 levels. On one side we saw good buying support coming from banking and FMCG stocks while Reliance become key laggard.

In alter sense; a short term price correction is possible below 8500 levels of Nifty. Take a note that none of the global market goes under correction. In fact, technical charts are not justifying for correction for December month so far. Shorting may be only a stock specific choice. If I have to worry then I am worried for momentum technical indicators like RSI.

For today’s trading session, opening is expected to be little higher. If it manages to stay above 8570 then I have a sense to trade long side for a move towards 8680-8700. 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. Once again, I will try to buy stocks having breakout as a buy.

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Strategy for Nifty December future – Nifty Future has support at 8570 and then at 8540 levels. Firstly, it is not so rosy that I trade Nifty Future as compulsion. If I have a choice then I will prefer to take long deal keeping 8540 as meaningful support. If it breaks 8540 then one has to think about price correction. Buy in dip may be the strategy which should work today also.

S&P 500 (USA) – Once again we saw a dip yesterday and then a bounce back came which was in line with expectation. S&P hints a new all-time high in yesterday’s bounce. It is just proving that 2075 is vital level and upcoming move should be up only. As long as S&P is above 2050-2035 levels we should not expect any meaningful support in any dip. It is true that short term correction is still due but market may consider those intraday pullback as correction.