27 June 2014: Nifty Elliott wave analysis: New series will open on weak note. Last and final hope for Nifty spot will be at 7440. If it breaks 7440 then we will see another round of selling. Technical resistance = 7525-7550!!!
You must read previous articles and watch the given chart
carefully to understand this article completely.
For 27 June 2014: -
On 26 June 2014, FII Sold INR 601.89 crs and DII Bought INR
170.92 crs
I have updated for the support at 7500 and 7485 during market
hours. We saw sell off continue till end and hitting 7485. Next, question is
where next technical levels are. Charts have some clear message for trading. We
have technical support at 7440. This must be last hope for short term up trend.
If it breaks and sustain below 7440 then we can see a drag towards 7300 also.
It is interesting to note that Nifty has closed below 20 DMA
supports which are at 7525. In fact, it hit sharp sell off yesterday when it
broke 7525. So, it was meaningful break below 7525. Hence, 7525 will act as
stiff trading resistance for today’ trading session. As long as it is below
7525 we cannot expect any good recovery in index. Simply, bears will have upper
hand below 7525.
For today’s trading technical support will be at 7440 and
resistance will be at 7525 and 7550 levels. If it breaks 7440 then one can
expect sharp selling. It may turn in to panic selling too. Believe it or not
but market does not like few deferred decision by Modi’s government. If selling
continues in gas stocks then things can be ugly. Weak monsoon will be a
catalyst for weakness in market if it breaks 7440.
Please visit our ‘intraday updates’ to get further updates or
to take good advantage join paid services.
Strategy for Nifty July
future – Nifty July
future should open near 7530 and then immediate trading support should emerge
at 7500 levels. If it sustain below 7500 then things will turn alarming. 7500
may act as last hope as ‘make or break’ levels. On higher side 7575-7580 will
act as stiff trading resistance. Today is first day of new series.
S&P 500 (USA) – It was said yesterday that I want
trade below 1945 to conclude for weakness. It hit 1945 and bounces and so
things remain same again. S&P may not be useful instrument to trade in the
range of 1945 to 1970. Well, it is equally true that I am wrong on my ‘summer
correction’ call. It never came and there is no such sign yet. Technical
indicators are moving with negative divergence and I am waiting for decisive
signal. Once again, keep your eye on 1945.
Join the conversation