You must read previous articles and watch the given chart carefully
to understand this article completely.
For 24 December 2014: -
On 23 December 2014, FII Sold INR 444.93 crs and DII Bought
INR 516.34 crs
Nifty has a high at 8364.75 yesterday before giving a diving
fall. Take a note that it was 61.80% recovery after a correction from 8626.95
to 7961.35. So, it was expected and justified. More than that, we have strongly
quoted for reaction to come at these levels. We took a full advantage of this
fall.
We have derivative expiry of December month trade. This force
to be reserve from trades today and I will act only if some good signal to
trade emerges. Take a note that we have 50 DMA support at 8252 itself. This will
act as key. If trades sustain below 8252 then we can expect a further dip
towards 8200 levels.
Based on Elliott wave theory, high of 8364.75 is peak of
corrective up wave ‘b’ which is against the main short term downtrend. I am not
expecting any great dip for coming days. So far 8215-8200 is next key support. One
thing is clear that if it gets follow up of selling then derivative expiry will
go bearish.
For today’s trading session, we can see flat opening. Immediate
trading resistance will emerge at 8295-8300 levels. If it spends time below
8250 then we can expect fresh dip. Trade below 50 DMA may put pressure on bulls
to hold their long. Will this hide and seek game continues at 50 DMA.
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Strategy for Nifty January
future – It is trading
with very heavy premium of 77 points right now. This index future cannot carry
such heavy premium for long time. Justified premium should be around 40-50
points so it has 25 points of extra premium so far. Technical charts are saying
for support at 8320. Below 8320 we can expect quick 50 points cut. It is
derivative expiry day so I am not expecting me to trade.
S&P 500 (USA) – So, as expected, it is on new
all-time high again. This is impressive. I am looking for a move above 2100
levels. It does not matter if it goes dead near Christmas. Technical charts
remain same. It is up and it will not easy to break even 2060 levels in normal
circumstances. Take it this way – this is perhaps only index of the world which
used to give higher high from past few days. Just prefer to be long only.
