You must read previous articles and watch the given chart
carefully to understand this article completely.
For 11 December 2014: -
On 10 December 2014, FII Sold INR crs and DII Sold INR 519.05
crs
So we saw recovery with a low at 8317. It went as the roadmap
suggested yesterday. Now, we saw mammoth drop in US market last night based on
fall in energy stocks. It may give some odd levels in opening minutes. I still
believe that some recovery should come as long as it holds the support of 8290
to 8280 levels.
Based on Elliott wave theory, we are in wave ‘a’. We should
see a possible recovery for wave ‘b’ which can come around the levels of 8480 to
8500 levels. We should see a development of wave ‘c’ after wave ‘b’. To see a
wave ‘b’, most suitable levels comes around 8280. It is not a compulsion to hit
8280 as a dot. If it breaks 8280 then things will surely turn worrisome on wave
chart.
For today’s trading session, we may see another lower
opening. It may be around same levels as of yesterday. Reason for this down
opening will be just a drop in US market. I again advocate for recovery from
levels near to 8317-8300 levels. Important support stands at 8290-8280 levels.
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Strategy for Nifty December
future – As per SGX
Nifty, it looks to open at 8370 levels. Important key support will emerge at
8350 levels only. Technical chart will hint for recovery till it holds
8340-8350 levels. Do not short the dip. I see another possibility for recovery
from lower levels. Note that 8280 is 38.6% price correction against the rally
from 7723 to 8626.
S&P 500 (USA) – Drop in energy shares put
additional pressure on Wall Street. A factor which was looking sweeter few
weeks back is looking poisonous now. OPEC has warned for slow pace of recovery
in economic next year. Is this alarming? Well, world was running on stimulus
from year 2008 onwards and this is first time when world has to go by its own. Based
on chart, I have quoted that market could fall on something unusual. It’s proven
that that unusual phenomenon is unusual fall in crude oil price. I am still not
on trade on this index yet. Below 2035, I do not see much scope to buy. Equally,
do not short. If it is wave ‘a’ on fall then a wave ‘b’ must come with
recovery. I will short for wave ‘c’.
