You must read previous articles and watch the given chart
carefully to understand this article completely.
For 16 October 2014: -
On 14 October 2014, FII Sold INR 694.67 crs and DII Bought
INR 495.52 crs
Once again, Nifty took support at mentioned trend line. This move
was completely against global cue. So far, Nifty is taking support and showing
resilience against global sell off. On higher side, it is facing resistance
near to 50 DMA. I still feel that Nifty is taking support and we are witnessing
time consolidation in the range of trend line support and 50 DMA.
Historical charts are suggesting that we can expect strength
only if it manages to stay above 7940 zones. Till that time, we may see sell
off from higher levels. It is interesting to note that right now we are still
in three wave dip pattern on Elliott wave. There are two important threshold
points on three waves down (a-b-c). One point is 7928 and next is 7978. There
may act reversal point i.e. from weakness to strength.
There is no great effect of global weakness. I may buy
relative strength in Indian market. For today’s trading session also, we have
support at 7825 to 7800 levels. On higher side meaningful resistance can emerge
at Elliott wave threshold at 7928. Once again, do not opt to buy mid cap and
small cap stocks.
Can we gain strength before Diwali? There is no clear cut
sign yet. Historically, Indian market used to be sluggish before Diwali. Most
of the time, real decisive strength used to come after Diwali session which
used to continue till last of December. If weakness comes after Diwali then also,
it used to last longer. So probably, based on market cycle, we are in indecisive
zone for short term.
My warning is still ON. Below 7800 or close below 7840 will
cost Nifty for a move towards 7600-7500, based on Nifty weekly Elliott wave
chart.
Please visit our ‘intraday updates’ to get further updates or
to take good advantage join paid services.
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. I am keeping study and levels exactly same as of
yesterday.
S&P 500 (USA) – Oppss !!! What a last night S&P
had. It hit a low at 1820 and then bounced. This happened due to wide gap in
supports. This sell off was quite expected. If you remember, I have already
said for high for 2014 when it was hitting 2011. Well, what is next is the big
question. Technical charts are hinting for consolidation in time wise and in
price wise too. Hence it may not take out 1820-1800 support in a hurry but who
can predict European market. End of QE is acting as shocker and it can prove me
wrong in the magnitude of correction. My basic is suggesting me not to bet on
recovery unless we get at least on positive close.
