NIFTY Analysis - July 2nd to July 6th '12 with next 1 to 2 weeks prediction

As mentioned in my previous post on Nifty we did see 5330 to 5335 acting as resistance level http://analyzestockmarket.blogspot.in/2012/07/nifty-analysis-eod-jun-29th-12.html

With 5335 acting as resistance a 65 point correction to 5270 level is possible. In the next few trading sessions 5260 to 5270 will act as strong support zone

Going by Fibonacci extension levels, 5070 acts as a major support zone, making this upmove possible until 5335

23.6% - 5194

38.2% - 5272

50% - 5335

61.8% - 5398

78.6%  - 5488

Elliot Wave Movement

Wave 1, 2 & 3 have got completed, in an uptrend according to Elliot wave thumb rule a mild correction should take place and this should pull the NIFTY down to 5260 - 5270 levels

If this correction happens then wave 4 correction gets confirmed and that will finally pave way for beginning of wave 5 which will be almost similar to wave 1

Immediate support zone - 5260 - 5270

Immediate resistance - 5335

Next level resistance - 5398 to 5400

and finally NIFTY will reverse around 5470 to 5480 levels

This confirms that the 5 wave move is over and correction will start coming in which will eventually break the major support zone of 5070

Jul 9th to Jul 13th - NIFTY Future strategy

Wait for 5260 to 5270 levels to catch up and then buy NIFTY futures and go long until 5400. Take 80% profits there and remaining be long until 5450 to 5470 levels

Word of caution, NIFTY should not retrace below 5265 levels, do not add fresh longs at the current level in NIFTY. Rather remain short from a swing trading perspective and book profits when you see NIFTY reaching 5270 to 5260 levels.

An upward move to 5470 can only be confirmed if 5265 levels do not get taken off drastically