02 January 2015: Nifty Elliott wave analysis: 50 DMA comes at 8300 now. If it can spend time above 8300 then we can expect a move towards 8375!!! Key support = 8240 > 8215 > 8200

You must read previous articles and watch the given chart carefully to understand this article completely.

For 02 January 2015: -

On 01 January 2015, FII Bought INR 18.20 crs and DII Bought INR 19.56 crs

Indian indices were relatively stronger on very first trading day of the year with a marginal positive close in dull trade. Volume was low but it recovered well after a down start and closed almost on high point of the day. Here is a crucial resistance to cross on chart. It is 50 DMA resistances which is at 8300+ levels. It is important for market to withstand above 50 DMA to add further strength.

Based on Elliott wave theory we are in corrective up wave ‘c’ which will also be divided in three waves as shown in given chart. It looks like above 8300 it will get final resistance just near or above 8375 levels. Wave support is only at 8215 to 8200 zone which I have quoted from past few days. Charting support has emerged at 8240-8250 levels which is supportive for bulls if 8300 is acting as break point.

For today’s session, I am expecting a positive to small positive start and then a litmus test at 8300. If it can stand above 8300 then it can be a good progression to close the week. For first half of the month, I want to be with bulls hence I have plan to buy dip as of now if nothing happens unexpected.

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Strategy for Nifty January future – It may open near 8345 levels as indicated by SGX Nifty. Immediate support will come at 8310-8300 levels which may not be broken easily. I am not interested in taking intraday position but I am definitely interested in taking long for some rise early next week. If volume hits to cross above 8360 then we can expect some good action for intraday for the last day of the week.

S&P 500 (USA) – Profit taking hit the US market from higher levels on very last trading day of the year. As I said earlier I will take any technical cues on these Holiday thin trades. It’s down but it can rebound to shock market. I believe that normal participation will begin from next week only. in a thin trade, it has closed on some support zone. I may opt to buy these dip to hold for first 15 days of New Year.