12 December 2014: Nifty Elliott wave analysis: Is Nifty losing its support of 8280 (~8270)? If yes then we may see fresh dip again. Recovery should come to form wave ‘b’ but it’s not a compulsion.
You must read previous articles and watch the given chart
carefully to understand this article completely.
For 12 December 2014: -
On 11 December 2014, FII Sold INR 808.27 crs and DII Bought
INR 431.93 crs
It took another dip which was almost looking certain after US
sell off. We got once sign of recovery yesterday which came in line with expectation
but it also got sold in last hour of trade. Based on Fibonacci retracement we have
next support at 50% levels which is at 8175 only. A support needs to emerge to
see a formation of wave ‘b’. I need to quote that we are getting a bigger sign
of trouble. Even if the recovery comes then also upcoming wave ‘c’ can be much
lower. Think, if magnitude of wave ‘a’ is more than 350 points then wave ‘c’ can
also be that bigger. It is giving me a hint for the test or break of 8000
levels. This can begin immediate after then end of wave ‘b’.
For today’s trading session, we may see opening on flat note.
Technical support it only at 8280 levels. I am expecting a panic selling if it
sustain below 8270 which was yesterday’s low. I will give up hope of recovery
if it sustains below 8270. I can just say that December may not be same as of
past few years. I had long yesterday but I booked for intraday. I like to add
long but I will depend on intraday cues only.
Please visit our ‘intraday updates’ to get further updates or
to take good advantage join paid services.
Strategy for Nifty December
future – I kept a
stop loss at 8315 yesterday and bought at 8328. It has saved 8315 in every dip.
Finally a recovery came but got sold at higher levels. Once again, I will keep
8315 as threshold. It is not going to be easy to trade. If fails to save 8315
then we may see some soft dip again.
S&P 500 (USA) – Current pattern has confirmed that
this December may not be same as past few years where December is known as
strong month for equity. Yesterday night, it hit a high at 2055 but then
correct in second half. I still have a view that support range will remain at
2035-2050 and S&P is still in same range here and there. I need to accept that
S&P is settling lower and it is about to slip from current levels. If
breaks current levels then it can hit levels near 2000!!!
Join the conversation