07 May 2014: Nifty Elliott wave analysis: We must see some decisive moves now. Nifty needs to stand above 20 DMA, i.e. 6740+. Equally, 6650 will be most crucial support before 16th May. So far, consolidation is on.

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

For 07 May 2014: -

On 06 May 2014, FII Bought INR 45.93 crs and DII Sold INR 55.73 crs

Trading is turning choppy as we are moving close to 16^th May. Charting pattern is showing consolidation and possibly we may see an upside move based on election outcome. I need to say that Nifty has to stand above 20 DMA which is running at 6740-6750 levels. From past few trading sessions, it is attempting but not crossing higher.

We saw sell off in US market last night but those should not impact Indian market. Even NIKKEI is also bleeding after long vacation. Indian market may see a hope driven rally. Charts seem to be under doubt about election outcome now. Well, it should not be. Near to election we can see a better and clear picture which is going in favour of market favorite NDA.

Technical charts are still suggesting for crucial support at 6660 to 6650 levels. On higher side, it needs to sustain above 6740 to 6750 to register further gain. Every level remains same as Nifty has not moved much so far.

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Strategy for Nifty May future – SGX Nifty is hinting for a higher start above 6750. I can say that it needs to spend time above 6780-6790 to say that bulls are back. So far, this is just odd consolidation. Timing is very important. Indian market wants to rise when global market may go under sell off mode. Take a note, I am talking about ‘Sell in May and go away’ mode.

S&P 500 (USA) – Yesterday was brutal for bulls. I need to mention that 50 DMA is now at 1864 and it has closed at 1867. This is on ‘make or break’ situation. Either, it will save 1864 and move higher today or it will topped out and sell off begin. Definitely, nothing will be smaller or limited in term of moves. I suggest that if it breaks 1864 then one must stopped out. On higher side, only if it can manage to stay above 1872 then we can hope for rebound. Let us see what is coming.