19 July 2013: Nifty Elliott wave analysis: Technical will be at back seat and will decide the levels for market. Technical support is at 6000 marks. Market eyeing on Reliance result.

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

For 19 July 2013: -

On 18 July 2013, FII Sold INR 178.29 crs and DII Sold INR 239.41 crs

Looking on above figures it is easy to understand that we have seen a short covering rally yesterday. For the first time we have seen some short covering in banking stocks. It was driven by better than expected result by Axis bank. Still, charts have not changed much for banks yet. It needs buying to get rid of pain.

I was already quoting for new all-time high for US market and we got it yesterday night. Even European market goes for newer monthly high. Comparing to any other indices, Indian market has not moved to that extent. It has happened due to tremendous weakness in banking stocks. Otherwise days would have been much better.

Yesterday, we got Axis Bank and TCS results. Both were better looking numbers in my view. Expect some good reactions on TCS today. Results for companies are not as poor as market did fear. We will get Reliance number today which may act catalyst for bulls.

Technical charts are advising long trades only. Technical support for today’s trading will be at 6000-5990. We have a chance of hitting 6111 levels on higher side. It should not be choppy days but things depend on many outcomes other than technical.

Strategy for Nifty July future – SGX JULY NIFTY is trading with loss of almost 30 points. It is at 6027 levels. Right now Japanese index Nikkei slipped by 550 points from high point. Overhang is reflecting on SGX Nifty. I am expecting support at 6010-6000 levels. If it has to hit 6110-6120 then it will not any day better than today. Let us see. We need to be cautious from topping formation. I hope that it will not come so soon but cannot deny such situations.

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.

So we got new all-time high on 18 July 2013 itself. I was expecting this to happen but it happen little earlier. Charts are saying that we may see the top formation now. As it is earning season so it may try to move beyond technical limit. My condition for newer life time high got satisfied. Time retracement is suggesting for 1700 which is make or break levels. Are we going to form top in USA? I have no answer today. I am avoiding fresh long as of now.

Regards,

Praveen Kumar