22 December 2014: Nifty Elliott wave analysis: Expect trading support @ 8200 and @ 8150. Should we buy low or should we short top? A trendy rise will face many hurdle.

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

For 22 December 2014: -

On 19 December 2014, FII Sold INR 668.85 crs and DII Bought INR 622.77 crs

So far, it is a great recovery. Moving forward, we can see some more extension of this recovery with correction coming in timely manner. We are in derivative expiry week and that makes me to feel some odd hurdle in recovery. Recovery comes with 7.70% dip from all –time high. Usual correction in trending direction used to come with magnitude of 8% or 11%. This is 8% kind of dip hence, prime trend has saved.

Sooner or later, I feel that it will go to make a 11% correction levels too but right now it is for up. When we see beginning of correction, we will take a count for it. Based on charting development, I am expecting immediate support at 8180 to 8150 levels.

Based on Elliott wave theory, first target on recovery is at 8215 and next target is at 8295 levels. Cross over of 8295 should attract more rises. This rise may be rapid in nature but effect may be neutralized due to derivative expiry where weak long will see unwinding.    

For today’s trading session, we can see flat opening with immediate support emerging at 8215 to 8200 of Nifty. Break below 8200 will invite a trading price correction up to 8160-8150 levels but this situation may come as odd result. I opt to buy a dip for better rise on strength. It depends on intraday signals.

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Strategy for Nifty December future – I expect a flat opening. We can assume that this is the levels where weak bulls will throw their stocks. We are near to expiry and hence market may be volatile on both sides. On Friday we were short on high point. For today, either we opt to be short near top or long from low. Now, high-low cannot be defined exactly. I expect a top point to be either near 8180 or after a breakout rally. Technical support comes at 8220 to 8200 or more lower.

S&P 500 (USA) – Another great rally in US market and we are in Christmas week. Usually, this is known has bullish week. S&P is almost on the verge of breaking newer high after a dip correction. It is looking like matter of time for this to enter in newer charting zone. Once it break above 2081, we can see S&P going to 2145+ levels in few weeks’ time. I have already quoted this target. I was also quoted that we will buy in correction only. We got that with good opportunity to enter with long. Now, it has ‘Inverse H&S’ pattern which can make January 2015 equally and truly bullish. Buy post-Christmas correction if you missed.