Monday, 8 December 2014

NIFTY weekly analysis for 08 December’14 to 12 December’14



Elliott wave theory: I have quoted for 1% up move with target at 8700 if it able to stay above 8620. Well, except one impulsive trade we never got 8620+ levels hence a dip came to test support of 8500. Well, below 8500 it will correct to come near 8400 and then it will be decisive in 5th wave. This is only first red deal on 5th wave so far. Correction is not looking big in this month as compared to 900 points of straight rise.
Market cycle: December is usually a good month for equity but we hardly saw two months old rally before December. So far, beginning for December looks good. Will it see any moderation against market cycle? So far, answer is no.
Technical indicators: Now, it is the time to count for weekly divergence again. A top is sooner as RSI has not moved with any greater strength.  

Charting pattern: As long as it holds above 8450 we cannot say that correction can last longer. Immediate technical support will come at 8536-8500 levels. 

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