You must read previous articles and watch the given chart
carefully to understand this article completely.
For 14 January 2015: -
On 13 January 2015, FII Bought INR 235.09 crs and DII Bought
INR 46.06 crs
I have advised caution at higher levels. Reason becomes clear
now after seeing the dip in last hour yesterday. It hit a high at 8356 levels
before seeing a fall to hit 8268 levels. It was very sharp. Take a note that
100 DMA is at 8158 levels which is almost 2% from current levels.
50 DMA is at 8342 as of now which is advancing. This will act
as stiff resistance for today’s trading session also. We saw fall in US market
also from higher levels yesterday night. We have no great sell signal yet on
the market but it may be coming sooner. I have already advised caution for
second half of this month.
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 and 8250. I say, if it can stand
and spend time below 8320 then we can expect another sharp cut from these
higher levels. Take a note that this rise has dominated by just one index heavy
weight HINDUNILVR. This is suggesting that index can be more volatile if price
corrects.
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Strategy for Nifty January
future – We can
expect opening go around 8340 levels. Expect technical support at 8320 and at 8270.
It may not provide any easier trade sooner. I am again advising caution at
higher levels again. Question is – can Indian market able to show better
relative strength?
S&P 500 (USA) – This dip from higher levels is
again giving shocks to bulls. Bulls have hope as long as it holds 2000 levels. This
is still making some sense that something is changing. No matter up or down but
range become wider compared to second half of last year. Technically, I am not
buying as of now but I will plan to review for buy if it tries to save 2000 in
this dip. One must note that 2000 must be a compulsive stop loss for all long.
