28 June 2013: Nifty Elliott wave analysis: So, bounce is coming and bears got trapped. Another mammoth gap up is coming today after GAS re-pricing. I said to buy dip. Have you bought?

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

For 28 June 2013: -

On 27 June 2013, FII sold INR 1043.27 crs and DII bought INR 358.38 crs.

Will you really care about above data to conclude for your trades? I am giving you a picture. FII were buying in rise from 5477 to 6230. Then they start selling aggressively from 5900 levels. So far they pulled almost 12k crs from equity segment. Due to sharp depreciation in Indian rupee, FII might be losing in most of their investment. When we have global strength, they should be buying 5600.

I have highlighted Reliance on buy side for whole June month. I bought this stock with my highest priority and I bought twice near 790 levels. We finally got the news and cabinet approved GAS re-pricing on higher side. Due to strength in Reliance, we may see a fresh up move. All oil production companies will open higher today.

US market moved higher again. So, now world forget about QE shock which was expected and obvious. Indian traders are still holding shorts. Today is the first day for new derivative series. It will open on strong note.

Technical charts are suggesting that we should see a move towards 5750. Well, but it will open at 5750. Then just prepare to see 5800 levels too. I bought the low and I will bet for mammoth rise in index too. In my sense we should start thinking about 6000 levels or more too.  

People found value in stocks when NIFTY was at 6100 and they do not find any value at 5600.

Strategy for Nifty July future – SGX JULY NIFTY is up by 80 points now and trading at 5757 levels. What more to write. It will open so higher that it will limit trading moves. Technical charts are still saying for buy in dip. I suggest buying some dip after gap up. Somehow Nifty July future will go higher towards 5860 levels in coming few days. Technical support will emerge at 5700 levels.

S&P 500 – I am keeping this line as it is. “I repeat that that 80% chances are that S&P 500 has made a top for the year 2013”.

I already said that technical charts are saying that it may try to reach 1660 as long as it holds 1584 now. Crossover of 1600 has generated momentum and confirmed the trend. We may see pause near 1620 levels. Let us see weekend closing. I am sensing for some resistance at 1620-1624. Cross over will give 1643 to 1653. I still advocate for buying only. Buy supports and resistances too.