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