You must
read previous articles and watch the given chart carefully to understand this
article completely.
For 25
April 2014: -
On 23
April 2014, FII Bought INR 767.61 crs and DII Sold INR 533.88 crs
Nifty hit
6861.60 as a new all-time high on expiry day. With this, we got rock solid close
on monthly chart. Now, we are in May series trade. Election factors may
dominate the trend. Elliott wave give one resistance @ 6878 as shown above. If
not then prepare 100% of wave 3 length to repeat in wave 5. That will give
6993.
So, near
to 6878, we are perhaps in most crucial levels. I must say that there may be
certain limitation on wave specific resistances at all-time high. Simple reason
is that market is driven by momentum whenever it dictates at new all-time high.
Momentum factor is still stronger. Do you know that 200 DMA for Nifty is at
6110 which is well 730 points away? It means that Nifty is more than 10% away
from 200 DMA. This is due to sharp rally without correction. This situation may
continue till 16 May 2014 at least or may be longer than that. 20 DMA support
is at 6722. As long as Nifty is above 6722, market may just try to hit higher
with few pause or intraday dip. May series will be full of action and may be
more than what one can think right now.
For today’s
trading, 6800 will act as support but that is also 40 points away. This keeps
the room for some initial dip. 6824 may also emerge at intraday support. If it
closes below 6800 then we may head towards 6722 in next week. Somehow, this market
may try to on silence before election result. On higher side, 6862 to 6878 will
as stiff trading resistances.
Please
visit our ‘intraday updates’ to get further updates or to take good advantage
join paid services.
Strategy
for Nifty May future – We may see a flat
opening. Immediate trading resistance will be at 6915. Cross above may generate
the possibility of higher test with target somewhere near to 6930-6935 first.
Technical support will be at 6880 levels. It will be safer to trade short below
6880 levels. We may have limited trading opportunity at higher side. Do not
trade a choppy situation. We may see good opportunity only in second half.
S&P
500
(USA) – It again hit near to 1885
and forming almost a double top pattern on hourly chart. Here is a caution for
shorts, if it breaks above 1885 then simply stop out. As long as it is below
1885, I will advocate for ‘May correction mode’. Take a note that, if it will
not break 1572 today then we may not see significant correction for first half
of May month. Correction may be in denial mode and it may come only in second
half of May. All I can say is that we need a sooner crack down to bet for big
correction. Above 1885, it will try to hit 1900 first and then may be 1950
next.
