You must read previous articles and watch the given chart
carefully to understand this article completely.
For 12 November 2014: -
On 11 November 2014, FII Bought INR 458.04 crs and DII Sold
INR 516.98 crs
Yesterday was also a waste day for Nifty which ended near
8350 for fifth day in a row. It was just so boring. This boring market has
developed an interesting small diamond pattern on chart. This is also not remarkably
big. It is suggesting that we may go near to 8416 levels which were mentioned
last week itself.
It is not that only Indian market is denying correction. No single
global index goes under any kind of correction. It give me a sense that
whenever correction comes it will be global phenomenon. I have already quoted
few days back that based on wave theory it turned to wave ‘5’.
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 on positive
note again. Once again it will retrace after higher opening. Key support will
come at 8290 levels. I would be more confident on correction call if it breaks
and close below 8290 levels. Stiff technical resistance will be around 8416. A 50
points diagonal may hint for 8416 levels to come now.
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Strategy for Nifty November
future – It will take
another opening on positive side. We have seen the reaction of higher opening
in past few days. It opens higher then used to take a dip. In second half it
used to recover to make day flat. This cycle needs to end to get a fresh up
wave. Technical support will be at 8320 and resistance will come at 8420 to
8430 levels.
S&P 500 (USA) – S&P moved from 2020 to 2040 in
five trading sessions. These are also as boring as Indian market. Nothing much
has left. We should not expect fresh up wave without any price correction. I
still feel that we should see at least one down wave before moving higher
again. In my view 2045 is still a stiff resistance. For bulls, 2020 will be a
decisive support. It seems that bulls will not give up as long as it is above
2020. I will stay short with my stop loss at 2045.
