You must read previous articles and watch the given chart carefully
to understand this article completely.
For 26 December 2014: -
On 24 December 2014, FII Sold INR 2808.27 crs and DII Bought
INR 509.09 crs
Elliott wave theory has already defined the resistance of
8375 as key resistance to make a top for recovery wave ‘b’. Now the dip goes in
line with my expectation. In our weekly analysis, it was quoted for a strong
start for the week and the weakness. Now, the next key support is at 8120 which
is odd 54 points away from current levels.
It was also predicted on Wednesday for weakness for expiry
day. I was not surprised for odd sell off. Have a look, Nifty January future
has carried heavy premium. It is almost 100 points. I do not think that it can
continue with this kind of premium. It must have happened due short covering in
fall too. History suggests that one has to be very cautious of this kind of
heavy premium.
For today’s trading session, we can see flat opening.
Immediate trading support will emerge at 8120. I mean that this is the only
meaningful support which must be watched. I can say that developed indices, especially
US indices, may not go weaker. We can see sell off in Emerging Market Indices. I
do not have any carry forward on trade. My expectation is for a dull close to
end the week.
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Strategy for Nifty January
future – As said
above, we may see dull trade on last day of the week as market man may go on
Holiday mood. Only opportunity I can see is if it gives up some part of its
premium. Technical charts are suggesting for support at 8260-8265. It is also
true that charts are giving hint for buy to emerge from 8260 levels. Heavy
premium is a caution.
S&P 500 (USA) – So far, it is going in line with my
expectation. It is on all-time high but dull due to Holiday season. This dull
move should continue for few days. I do not think that market participation
will go great till New Year. This gives me a hint for dull next week. This does
not mean for weakness. US market is strongest of all and it will remain
stronger. 2070 and 2060 will emerge as good support as long as participation
does not come.
