05 January 2015: Nifty Elliott wave analysis: Now, expect consolidation before any fresh up move. Technical support to emerge in the range of 8300-280!!!

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For 05 January 2015: -

On 02 January 2015, FII Bought INR 259.82 crs and DII Bought INR 69.78 crs

We had a long before New Year to enjoy New Year rise on Nifty. We got 110 points of gain and we closed our long. I am expecting consolidation in first half of the week. Best part is that it has moved above 8375 and this may be a soft breakout. It is giving me a hint that as long as it is above 8300-8280 we can expect more extension of rise.  

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. Now, this market is to buy in dip. I must add, do not buy the top. We can expect some price or time consolidation before taking fresh up move. I will plan to buy this consolidation as I booked my profit almost on top.

For today’s session, I am expecting a positive to small negative start due to sluggish US market future. It may have immediate trading support at 8350 while trend support will emerge only at 8300 levels. Wait to see market reaction in first half and then plan to buy. Take a note that this is a uptrend which begin from 7963 and now took a high at 8410. Little too big and too fast!!!

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Strategy for Nifty January future – SGX Nifty is giving me a hint for opening at 8340 ranges. Immediate trading support will emerge at 8310-8300 levels. This may act as make-or-break support for intraday. If it makes then it should recover. If it fails to make at given support, then it can give up some part of gain. Be careful in picking long as it must at appropriate levels.

S&P 500 (USA) – US market has so many 0% change day in past few months. Friday’s close was one such beginning for 2015. I am still not taking it as any sign of weakness. Technically 2050 and 2035 should act as support. I expect this to convert in to buy sooner from lower levels. I will wait to conclude to buy. I expect a top in the range of 2130 to 2145 which I am quoting from November 2014 month itself.