You must read previous articles and watch the given chart
carefully to understand this article completely.
For 14 October 2014: -
On 13 October 2014, FII Sold INR 671.06 crs and DII Bought
INR 566.83 crs
Yesterday we opted to buy Nifty future at 7835 and planned to
hold. It was just a test of support at 7800 which has shown based on trend line
in the chart. In the wave pattern also we are almost at 38% of wave of 5. Exact
dot point is at 7774. We are in constant three wave dip on Elliott wave chart. It
just mean for one rise between two falls.
Now, above 7850-7860, we can expect some levels in the range
of 7925 to 7940 at least. Real test and real challenge will come at 7980. Trend
remains three waves (a-b-c) down as long as it is staying below 7980 but I took
long on support. I will just not prefer to buy the rise.
There is no great effect of global weakness. I bought
relative strength in Indian market.
For today’s trading session, we may see opening on upside. Immediate
technical resistance can emerge at 7910 and then at 7945 based on technical
analysis. Technical support will come at 7860-7850 levels. Take a note that
practically it has never sustained below 7800 levels. If index is a buy then it
never mean that I can buy midcap or small cap index too. Keep your eye on DLF
too. I strongly criticize SEBI for their incomplete and extremely delayed
action on DLF promoters. Give me a single reason for why have they exempted promoters
from financial penalty. Do not give me logic that it could have hurt retails
investors more. Where were these watch-dog when we saw HFCL meltdown multi year
ago. I am expecting series of law suits coming ahead on DLF. Sooner, it will
just be a smaller name in their domain. I will update a wave chart study on DLF
on this weekend. Never-never and never buy DLF now in any dip or rise, strength
or weakness.
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Strategy for Nifty October
future – Nifty
October future may take some positive opening. As long as it is staying above
7890 I am expecting levels of 7950-7960 levels at least. I am not denying the
possibility of 8000 either. Do not short unless it go below 7890 or show
weakness at higher levels. As we have forwarded long so I will look for
suitable levels for exit to be on side line.
S&P 500 (USA) – In just four weeks it goes at five
months low. It took a move towards my expected 1850 levels. It has closed at
1874 in last trading session with single day loss of 1.65%. It is the end of QE
effect in October months. Well, shorting from 2000 to 1875 is sufficient
enough. Now, mild technical recovery is expected. I will not prefer shorting
without technical recovery. Someway an somehow we will see 1800 levels too
sooner or later. Bounce can go at least in the range of 1890-1900 levels
