09 January 2015: Nifty Elliott wave analysis: Prepare yourself for second big gap opening back to back. It may go beyond 50 DMA which is at 8329 levels.

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

For 09 January 2015: -

On 08 January 2015, FII Sold INR 466.78 crs and DII Bought INR 288.88 crs

100 DMA for NIFTY comes at 8138 and 50 DMA comes at 8329 and market is just at the midpoint of this crucial moving averages. We are on the verge of getting another massive gap up as US market got two big back to back rallies. Yesterday DOW JONES register the gain over 323 points.

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 has fulfilled the condition of top of wave ‘c’ in wave (b) itself. Big question is that if this is only the pullback in wave ‘c’ then we may not see the violation of 8445. Well, we are 200 points away from those levels. Hence, rise may have good reason to extend. Worry part is that it eats opportunity for intraday traders due to gap up.

For today’s session, it is showing that opening will go by 70-80 points higher. It means it will open in the zone of 50 DMA. I usually avoid to trade big gap days. I will not be bearish easily in this market as this market may shock us. To be bullish, it is just too big to handle this kind of gap up. We will take decisions based on intraday developments only.

Take a note that only crude is not the only fear of market. Ghost of Greece is also back in euro zone.

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Strategy for Nifty January future – SGX Nifty is giving me a hint for opening at 8320-8330 ranges. It may be second 70 points higher opening back to back. This factor is pushing me back from intraday long attempt. Still, this market can go higher. Technical support is at 8220 levels. Suppose if it opens above 8330 then immediate support will emerge in the range of 8290 to 8280. It is still a buy in dip market.

S&P 500 (USA) – A massive rally back to back in two days has pulled S&P higher. This was the only reason I suggested to buy only in the dip. Before the beginning of the year it was said that for the first half of January we should see rise. It looks like it was opportunity with the beginning of the year. I feel that this rise must go near to 2100 by next week itself. Any pullback will be opportunity to buy only. Technical support will be at 2050 to 2040 only.