12 January 2015: Nifty Elliott wave analysis: I still believe for a move towards 50 DMA which is now at 8334. I advise strong caution for second half of the month. Key resistance = 8445 & 8626 !!!

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

For 12 January 2015: -

On 09 January 2015, FII Sold INR 297.99 crs and DII Bought INR 299.53 crs

Friday was so wild due to Infosys result. It was good to see that Infosys came with better set of number while there were so many words of pessimism. I have a view that Infosys came with good result and it may remain best result of this season. Infosys result has set a land mark level for every corporate. I strongly believe that global indices may see a blow up top before sell off.

At the beginning on the year itself I have presented a bullish view for first two week of the month. This may extend but after a move we may see a large sell off coming. This high may come here and there near to previous high or a wave resistance of 8445. Take a note that this may not be compulsion. It is the time for you to watch development happening in euro zone market which can again affect the world.

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.

For today’s session, it will get a gap down opening. I can hope that this may be any big gap down. So far in 2015, we saw gap opening almost every day. This is just not good for traders. I consider 8250 and 8190 as key support if dip comes. On Higher side 8334, i.e. 50 DMA is still a key resistance.

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 8290 levels. I am expecting another fluctuation with massive degree. 8335 and 8370 will be key resistance and still under capacity to hit. Bulls may take their attempt. Key support will be 8250 and then at 8205 levels. I am strongly advising caution for the second half of the month as said at the beginning of this month.  

S&P 500 (USA) – I said that technical support stand at 2050 to 2040. We saw the test of 2040 on Friday’s trading session. I still believe for a blow up top. Hence, I am not shorting yet. This blow up top may be final top. It seems that previous cycle of hitting top in the month of January – February is back. If this has to happen then January top may be final one. Have a look on support. 2040-2035 is immediate support.