23 December 2014: Nifty Elliott wave analysis: Recovery continues and turning to strength. No shorting at all. Nifty can hit newer life time again in New Year. Support – Intraday @ 8295-8280!!!

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

For 23 December 2014: -

On 22 December 2014, FII Sold INR 335.24 crs and DII Bought INR 389.12 crs

We got 50% of recovery of recent fall in just 4th trading session. This recovery is in line with market expectation and market cycle. Even after lower crude oil price, I feel that market should go higher. The next levels that we can talk is 8375 and then a move towards 8500 too.  

We are in a derivative expiry week and I volatility will be essential part as December month was bigger compared to past few month. If dip comes in volatile move then also we should prefer to buy this dip. We saw better performance by Bank Nifty in fall and hence some price consolidation compared to Nifty is always good. Sooner a bigger move on Bank Nifty will also come which will outperform Nifty. It is the time to expect 20000 on Bank Nifty in January month.

Based on Elliott wave theory, we should expect 8375 by today or tomorrow sometime. Technical support will emerge now at 8295-8280 levels which were resistance earlier.

For today’s trading session, we can see flat opening with positive biasing. As long as it is above 8300 levels we can expect bias to remains positive. I hope this to go near 8375 at least before taking any decisive move. Let us see. If situations remain favourable then I will plan to buy dip.

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Strategy for Nifty December future – I expect a flat opening. As long as it is above 8310-8300 we can expect further extension of rally. The next big target to talk about is 8390-8400 levels. Premium fluctuation will be very high. So far, it is still a buy. One should prefer to be on buy side. Use dip to buy with proper stop loss.

S&P 500 (USA) – It went up as expected but it is still little shy at 2081 resistance marks. It may be just a pause. So far, charts are still having same words. It is should be strong in to New Year and it should stay strong till mid of January at least. I am expecting a target around 2145 levels. If this market has gained its stability then I can say that even 2060 will also act as strong trading support now.