You must read previous articles and watch the given chart
carefully to understand this article completely.
For 13 November 2014: -
On 12 November 2014, FII Bought INR 459.47 crs and DII Sold
INR 559.44 crs
Well, we just got the top at 8415.05 yesterday and then a dip
of 35-40 points. Just 35-40 points are not enough to say that we have seen a
top. It true that 8416 is most desired resistance given by Elliott wave theory
which has worked so far. I can see good confirmation for top will come only and
only if we can able to see a close below 8290 which is still way too far. Why I
am saying too far? If it breaks 8290 then it will be at the lowest point of
past seven trading sessions.
Even US market denied a possible correction last night with
strong recovery from intraday low. It is just trying to generate a fresh
momentum after time consolidation. This may just about to break higher again. Small
threshold left for bulls.
It is not that only Indian market is denying correction. No
single global index goes under any kind of correction. It gives 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 may try to retrace after higher opening. Key support
will come at 8290 levels. Another meaningful support will be 8350. I would be
more confident on correction call if it breaks and close below 8290 levels.
Stiff technical resistance will be around 8416.
Please visit our ‘intraday updates’ to get further updates or
to take good advantage join paid services.
Strategy for Nifty November
future – It will take
another opening on positive side. It will face resistance at 8450 which was
defined yesterday itself. One should never short stand above 8450. Meantime we
will see a critical intraday support at 8390 levels. It is equally true that as
long as it is above 8320, it may try to challenge higher levels only.
S&P 500 (USA) – It gave us all signals of weakness
but it never slipped in my desired way. Think, it has not even broken 2030
levels and recovered. This is showing intensity of money. I need to be clearer –
if it goes above 2045 then I will not expect any more correction till December
end at least. Take it either way – 100 points up above 2045 or 100 points down
from near to 2045. So will it come at 2145 by Christmas day? All bullish
possibilities are still alive. Take a strong precaution. I may opt to remove my
shorts from S&P by today itself with small loss.
