02 July 2013: Nifty Elliott wave analysis: Nifty has retraced 50% of its fall in just three days of rise. Even if pause comes, it will favour bulls. Technical support is at 5850 > 5820.

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

For 02 July 2013: -

On 01 July 2013, FII sold INR 1.47 crs and DII bought INR 213.60 crs.

FII has sold Indian market from the fall of 5950 and they sold till 5566. Then there were just a day of buy and again they sold. We need to conclude that FIIs are either not participating this up move or they are participating in a halfhearted mode. It does not mean for end of rally.

Dow Jones Industrial average reaching to its critical 15100 levels and looking for pause. This pause is not the sign of weakness. Indian market is likely to move parallel with the global indices with very low expectation from policy making. I can say that, we got a rise against so many odd, especially when Indian rupee was so weak. It is still not improving. Most mid cap stock price is now discounting the short term impact of Indian rupee. Those have already slipped a lot before bargain hunting.

Technical charts are suggesting for support at 5850 to 5820 ranges. Do you know that 200 DMA is reaching to the highest point of recent many months? As of now it is at 5824 which will act as strong support now. I still believe that Nifty will hit 6000 marks with some consolidation. We could maximum get intraday correction. Let us see the intensity.

I picked few stocks in dip and all are moving higher day after day like Reliance, HDFC and Rcom.

Strategy for Nifty July future – SGX JULY NIFTY is down by 10 points. It does not make too many conclusions. We will see flat opening with trading support at 5850 levels. I will again prefer to buy any dip. If I am right then I can see 5950 by today. I still believe for 6000+ levels. It is very important that one should leave the temptation of shorting for 40-50 points as those may misguide you.

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 am maintaining by bullish instance from post ‘announcement of rollback of QE’ days. It has rallied from 1560 to 1626 levels. I have spotted 1620-1624 as critical resistance. It will take another attempt today to cross higher. Time has come to say that prepare to see another ‘new all-time high’ on US market.