31 December 2014: Nifty Elliott wave analysis: Year-end trade may be dull due to less participation but market still has strength to move forward. NIFTY Support – 8215-8200!!!

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

For 31 December 2014: -

On 30 December 2014, FII Bought INR 277.92 crs and DII Bought INR 160.87 crs

What has happen yesterday? Market was negative throughout the day with small trading range but finally moved little higher in last hour of trade. Eventually it has seen a 0% change by close. This is the characteristic of low volume choppy market which has inherent strength.

Good part was that it has respected the technical support of 8215 levels which was mentioned yesterday. My technical conclusion remains same. We will get technical support in the range of 8215 to 8200. Once again, I am repeating that I cannot conclude this choppiness as sign of weakness. It is just a historical cycle of low volume on year end trade.

For today’s trading session, I am expecting dull activity with lower market participation but biasing may be on positive side. Cross above 8250 will give a hint for 8280. If it can sustain above 8280 then it may try to make a move towards 8320 levels. At some point it will turn dull. What can be that level? This is beyond the scope of analysis. 8250 is a decisive level. I will not consider for strength if it stand below 8250.

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Strategy for Nifty January future – It may open near 8330 levels as indicated by SGX Nifty. It may be misguiding like yesterday with quick and many impulsive moves here and there. Premium fluctuations need to be monitored carefully. Yesterday’s low should act as good support which was at 8280 levels. Opportunity may not be great as traders are on Holiday mood to welcome 2015.

S&P 500 (USA) – US marketed has seen small profit taking with a 10 points negative close. I am not expecting much of action for the day. Technically it is on support for intraday chart. I still expect 2100 figure to emerge on S&P sooner this week or early next week. Choppiness is just a result of Holiday mood. It has no technical meaning. Historically, first week of January used to be bullish only.