04 July 2014: Nifty Elliott wave analysis: 7761 is next indicated resistance based on Elliott wave and it is matching with RSI negative divergence. Buy only if it sustain above 7761 !!!
You must read previous articles and watch the given chart
carefully to understand this article completely.
For 04 July 2014: -
On 03 July 2014, FII Bought INR 950.82 crs and DII Sold INR
624.21 crs
I can still say that as long as it is holding above
7685-7660, this market will present pullback view towards high. I am still
worried towards big negative divergence on RSI. This is something which technician
cannot ignore. Just for that caution, I am advising to be cautious if it misses
7760 levels today. I have already updates yesterday in my intraday updates that
we will get initial sell off from high point. We got almost a dip of 50 points
in very first hour.
S&P and DJIA hit new all-time high with DJIA crossing
above 17000 marks. We will get a hangover opening. I am assuming that Nifty will
open near 7750 levels. I suggest waiting for 10-12 points to get a higher cut
above 7761 levels. If it sustain above 7761 then we can see levels of 7800
levels.
Equally, if it misses 7761 crossover then ‘RSI negative
divergence’ can comes in to play anytime. This can pull the market down. I said
this earlier also and repeating now also. It is a tug-of-war between ‘price’ vs
‘divergence’. So far, price is winning.
7761 – is a decisive point.
For today’s trading, I prefer to watch market reaction near
7761 or near 7700 levels. 7761 may be point to short and 7700 may be the point
to buy. Question is which opportunity will come first. It hardly matters. Note one
thing – above 7761, it is a strong buy. If Elliott wave fails at 7700 then it
can fail at any levels. It has newly indicated top @ 7761.
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Strategy for Nifty July
future – Nifty July
future will get some higher opening based on hang over of rise in US market. 7785-7800
will be a zone of stiff resistance. Cross over of 7800 can generate a strong
buy. In the down side, 7720 may give a mild sell. One need to wait for better
indication to come during trading hours.
S&P 500 (USA) – This is a great momentum which has
generated above 1970. We got close at 1985 and it is looking to hit
psychological 2000 marks. Even DJIA closed above 17000 marks. S&P still has
a room to move 15 points more before any correction. Trading pattern suggests keeping
high low as stop loss to hold long. I am not adding anything more on analysis.
I am simply waiting to see 2000 levels. It’s going to be historic event.
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