You must read previous articles and watch the given chart
carefully to understand this article completely.
For 05 November 2014: -
On 03 November 2014, FII Bought INR 1413.34 crs and DII Sold
INR 1183.08 crs
We got a high at 8350 and closed on moderate note. Nifty is
still on all-time high. Have a look on hourly chart which is showing how these
600 points moved with four unfilled gap up. Another thing is that we have many
holidays in between. This is not a good sign for rise to extend.
Based on wave theory we have resistance at 8416 on Nifty
which is only a meaningful technical resistance to talk about. It does not
matter if top comes at 8350 or over shoot above 8416. Short term chart is
heavily over bought in the absence of any price correction.
For today’s trading session, we may see opening at flat note.
Technical charts are advocating for resistance on any rise and we may expect
price correction any time. I believe for a move towards 8100 to 8000 levels
very soon. On higher side 8350 will also act as resistance. Above 8350, it may
try to come in the range of 8400-8416.
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Strategy for Nifty November
future – We may see opening
near 8380 levels as shown by SGX Nifty right now. We saw run from 7760 to 8400
levels too fast in too furious way. Almost 30% rise came in gap up mode. We are
very close to another short term top. If trades sustain below 8340 then we may
see a possible 50-100 points dip.
S&P 500 (USA) – It hit a high at 2024.50 and then a
small correction up to 2003 before closing at 2012. It is a sign of pause but
clear sign of shorting will emerge only on close below 1990 levels. Technical
charts are suggesting for top somewhere from 2020 to 2045. SPX VIX is running
little higher to confirm for a top or near to top. Long on S&P must be
avoided at these levels.
