10 December 2014: Nifty Elliott wave analysis: It is time to hit the beginning point (8290) of consolidating wave. Support 8290-8280. If sustain below 8280 then newer brutal wave of sell off will hit.

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For 10 December 2014: -

On 09 December 2014, FII Sold INR 221.52 crs and DII Sold INR 345.38 crs

Once again, it has broken key threshold of 8400-8390 and went for another big sell off day with a low at 8330. One wave sell off was justify for the target at 8300 which came in striking distance. Do you know that Nifty goes on monthly low with just two days of sell off? Next good support will come at 8300 to 8290 levels on Nifty. So far Nifty has corrected nearly 300 points on Nifty from all-time high. It is one third of the rally. I am seeing a possible support to emerge at 8300 to 8280 zone.

For today’s trading session, based on Elliott wave chart, a possible buy may emerge at 8300 to 8280 which I like to test. I am giving one strong assumption. If Nifty saves 8280 and bounce to give a moderate close then it may justify for a fresh move higher. If not then Nifty can go as low as 8000 levels too. December is usually not a month for big move in the market. Correction might be done near 8280 levels itself. There may not be point to short unless something major happens on global market.  

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Strategy for Nifty December future – As per SGX Nifty, it looks to open at 8350 levels which will act as immediate trading support. In that way, gap down will eat a possible 40 points move for shorts. I take 8350 as last hope for bulls. If they have to show their efforts then it’s the time now. Else a move towards 8100 will also possible in few weeks’ time. Let us see how it reacts. Read my intraday updates to get more precise view.

S&P 500 (USA) – Was the bounce so unexpected from 2035? No, definitely no. 2035 was most meaningful support. We saw a low on do at 2035 and then a 25 points intraday bounce came to close at highest point of the day. Remember, its December months. Market has added volatility for intraday but daily chart on closing basis is still looks flat. It hit a low at 2035 to fulfil demand for correction and closed at 2060 to bring market same levels to make a next move for 2100. I have quoted few days back also that I will not prefer to buy without correction. I am taking it as the demanded correction. now, it can move towards 2100.