01 July 2014: Nifty Elliott wave analysis: A bounce that begins from 7480 may get a move towards 7663. A real big move will come above 7663 levels. It is a pre- budget rally.

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

For 01 July 2014: -

On 30 June 2014, FII Bought INR 1288.16 crs and DII Sold INR 181.23 crs

When it was looking as a downside break down we got bulls gap up and a strong session. A session which has ended at 7600+ levels. How positive is this? I feel that it has already done with major move in just first hour of trade. Based on Elliott wave – next halt can be 7663 levels. It can act as stiff technical resistance. Above 7663 we can expect a massive rally. Yes, above 7663 we will surely get a new all-time high and a move towards 7800 as well. Take a note that this has to happen above 7663 only. As of now, the level of 7663 will act as stiff technical resistance.

Current up move is just one day old and just one day away from 7480 levels. Chart is showing how important it was. For traders, this up move has thrashed the possibility of bear break down. Until unexpected happens we can say that we are too far from such possibility of break down.

For today’s trading technical support will be at 7580 levels itself. As long as it is above 7580, Nifty will be in the race to come near 7663 levels. If it goes below 7580 then it will again bears will try to play with their cards.

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Strategy for Nifty July future – Nifty July future should open little positive near 7630 and it is good to get a flat opening. Hourly trend line goes higher with a possibility of pause at top. Take a caution, if it fails to move above 7650 in first hour itself then it may retrace yesterday’s rise to a good extent. I will update move on my live updates.

S&P 500 (USA) – I need to repeat, as long as S&P is oscillating between 1970 to 1945 we cannot get trading direction even near all-time high. It has ended day again at 1960+ which is still a positive factor. It is still not going to be easy to surpass 1970-1980 ranges. As we have not got desired ‘summer correction’ this year so market may come with something new. What that can be? So far charts are answerless. If not then it is at least beyond my scope of conclusion.