13 January 2015: Nifty Elliott wave analysis: Above 8335 it can again try to move forward towards 8445 levels. I this market buy in dip? Have a close eye on HINDUNILVR!!!

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

For 13 January 2015: -

On 12 January 2015, FII Bought INR 244.95 crs and DII Sold INR 331.18 crs

Before beginning, have a look on run on one stock called Hind Unilever. This stock went up from 760 to 900 in just 5 trading days without any price correction or consolidation. This kind of price movement makes me uneasy to deal for trades as we are just in the hand of just one stock.  

So far, charts are up and showing all journey for upside only. I can say that above 8335 which 50 DMA is, it deserves to be up only. Based on pure charting view, above 8335 it can hit 8445 levels or may go close to 8445.

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 fair opening without any big gap. Technical support will emerge at 8280. I say, if it can stand and spend time above 8335, it can move forward. There is nothing for bears so far. We can say that as long as it can maintain levels above 8335 it can bet for 8445. Above 8445 it can bet for a level which can be comparable to all-time high. It seems so bullish. Still, it may not be easy to make an easy buy due to few big gap up in past few days.

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Strategy for Nifty January future – We can expect opening go around 8360-8370 levels. Expect technical support at 8335 and at 8300. So far, it seems to be buy in dip. I am not very sure for today if I should buy the dip or not. This is just what charts are saying. I never prefer to trade without consolidation if price comes after 2-3 big gap. I am worried about impact come by HINDUNILVR. Let us see.   

S&P 500 (USA) – I still believe for a blow up top hence rise is expected. It seems that pullback has done for now. As of now, close above 2035 can add strength from here. Euro zone has seen better close last night. I do not want to be bearish without a confirmation for top. I am playing for top which should be comparable to all-time high on S&P. equally, I advise strong caution near to those levels.