You must read previous articles and watch the given chart
carefully to understand this article completely.
For 30 May 2014: -
On 29 May 2014, FII Sold INR 522.90 crs and DII Bought INR 195.20
crs
I was expecting this sell off to come on expiry day and it
went as the road map suggested. I put some marking for Elliott wave on the
chart and it is suggesting that story is not over yet. Somehow, Nifty will go
near 7130 before turning decisive. My given chart is an hourly chart. Pictures
were little unclear on Daily chart.
Hourly chart has some sense of H&S pattern too. It is
suggesting that Nifty can go as low as 7000 to 6900 levels. Today is the first
day of new month series. Traders may turn nervous sooner. I can still see that
traders are picking odd small cap and dangerous mid cap stocks which is
definitely not a good sign.
According to Elliott wave theory on hourly chart, Nifty is in
trending wave ‘C’ which is a part of corrective full wave. So we are in wave
‘C’ from 7504 and we have already travelled a distance of nearly 200 points.
Logically end point of wave ‘A’ need to be broken. End point of wave ‘A’ is at
7130. This is prime reason that I try to be reserve from buying on rise
although stock specific moves are coming to catch for good.
For today’s trading technical support will be at 7200 and
then at 7130 levels. If it stays below 7220 then we can expect this fall to
continue. On higher side it will face resistance at 7300 levels now. I prefer
to short this market on rise only. We still have some positional shorts in our
pocket.
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Strategy for Nifty June
future – It has key
support at 7250 levels now which is on striking distance. Downside will
intensify if it will spend time below 7250 levels. On higher side it will face
resistance in the zone of 7300 to 7320 levels. Can we see levels of 7150 too in
this wave? At least I am expecting this to happen from past few days of trades.
S&P 500 (USA) – So far, journey remains up for US
market. Either one use Tom Demark indicators or Fibonacci retrenchment and Fibonacci
curve, all were hinting from April month that Top should come as 19XX. Now, it
can be either 1903 or 1930, it hardly matters. Core of study is that we are
either at the top or at the counting distance from top. I can still say that
below 1900 we can get confirmation of decisive dip. Top should come on May
month and today is last trading day.
