You must read previous articles and watch the given chart
carefully to understand this article completely.
For 18 December 2014: -
On 17 December 2014, FII Sold INR 1636.36 crs and DII Bought
INR 1423.83 crs
Magnitude of wave 5 begins from 7723 and end at 8626. What we
saw so far is almost 75% price correction in just 10 trading sessions. I can
still say that it is not easy to conclude that dip is over. I was long and I still
prefer to be long on this market with words of recovery. We have warning sign
on Nifty as it is below 100 DMA. First need for Nifty is to stand tall above
8082 levels.
Based on Elliott wave we have some targets on upcoming recovery
if comes. First target is also stand at 8215 which is almost 180 points away. Hence,
recovery should be sharp if comes. Without a single positive close we cannot
conclude for recovery. Today’s session will be decisive and most crucial.
For today’s trading session, we can expect positive opening. If
it stands above 8082 then we can see quick fire rise. Take a note that if
market sustains at high then we may see short covering rise. It is also true
that weak bulls will off load their position at some quick higher levels. So,
one rise will definitely get sold at high and second rise will be decisive. First
profit talking may come 8100-8120. Buy every dip as long as it is above 8000. I
will buy until Nifty hits 8215.
1 USD = INR 63.29____ it has done the damage. Believe me,
within 15 days; once again we will see a panic weakness in Indian rupee. After shock
is a natural law.
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Strategy for Nifty December
future – A low came
at 8007. I had a buy at 8015 to 8020. Next buy point is trade above 8100
levels. For today’s session also, I will not prefer to short this market. This is
a buy market in dip as long as it holds 8000 levels. If, short has to emerge
then also it should come from higher levels but that is also too far. Above 8100,
we may expect quicker 100-150 points rise in few days.
S&P 500 (USA) – Finally, a 50 points intraday
recovery came and sustained to give a closing at 2012 levels. This is come with
some bounce in crude oil also. Technically this recovery was in demand and it
came. Take a note that this is just first day of recovery so the next task for
market is to get follow up of this recovery. If follow up buying come then it
will extend its recovery. If not then it should get sold at high. Technical support
will emerge at 2000 as I am assuming some stability now. Moving higher it will
face resistance at 2035.
