09 July 2013: Nifty Elliott wave analysis: Crossover of 5834 (200 DMA) will give another test towards 5900-5906. Market desperately need cross of 5906 now to see further big rally.

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

For 09 July 2013: -

On 08 July 2013, FII sold INR 204.46 crs and DII sold INR 59.11 crs.

Indian indices rebounded smartly from lower levels and closed almost near to the day’s high. Even after that FII and DII figures are negative. It is almost irrelevant to discuss money flow now as market is stagnant now. We need to note that Indian market is still in a range from past 10 months when almost every single global index took a rally in between.

European indices closed sharply higher in the last trading session. On other hand, US indices moved higher as expected. Those closed higher for third day in a row. It is almost confirming for big move ahead this moth itself.

For Indian stocks, we have seen panic kind of trading in many sectors like banking and metal. Shorting those stocks at this kind of price is not justifying with market dynamics. Equally when Nifty closed lower by half percent down, at the same time mid cap index was higher by half percent. It is suggesting that some broader participation is coming ahead.

Technical charts are suggesting that if trades sustain above 5834 then it might try to take a move towards 5870 – 5900 levels. It is important to note that we need to surpass 5906 on higher side to bet a big move in this month. I believe that it is coming. Only question is when.

Keep an eye on news flow from finance minister side. It can give some surprising trigger anyway and anytime.

Strategy for Nifty July future – SGX JULY NIFTY is trading higher by almost 20 points which is indicating for higher start. Cross above 5850 will give us a move towards 5900 again. Technical support will emerge at 5820-5800 levels. I am already suggesting trading long and adding long in every single dip. Let us see if Nifty July future will able to cross 5906-5916 levels on higher side. Momentum is the last requirement.

S&P 500 – Current formation is giving a hint that S&P 500 will give a new all-time high by July month itself or by first week of August.

It got a hit at 1644 and closed stronger. Technical charts are suggesting that break above 1655 will generate a most exciting 1750 as next target. It means a big rally to make another newer all-time high. Technical support will be in the range of 1627 to 1624. Charts are saying that just play long at least on US indices.

Regards,

Praveen Kumar