07 July 2014: Nifty Elliott wave analysis: NIFTY – three possible figure for short term top = 7761 or 7800 or 7840. Violation above 7840 will have another meaning for sharp rise towards 8000. This week top may remain final!!!

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

For 07 July 2014: -

On 03 July 2014, FII Bought INR 950.82 crs and DII Sold INR 624.21 crs

On Friday’s session, nifty took a dive from high point to hit exact support of 7760 and then bounced in its own style in last hour to close near to crucial 7761. It was impressive bounce. Well, so far this rise is going on big negative divergence and its almost double big divergence. This will not take its effect unless the break of some critical point. I must add that we may be heading towards another short term top. This top can either be 7761 or 7800 or 7840. I expect for the break of 7761 in today’s session if not then it will surely play its role. So we left with two figures, one is 7800 and next is 7840.

We are in budget week. We will get rail budget tomorrow and union budget on 10^th July. After that market will enter in earning season. Budget session will begin from today. This week will have some crucial value. It looks like we will get short term top by this week only if not today.

7761 – is a decisive point.

For today’s trading, I prefer to watch market reaction near 7761. If it crosses above 7761 and sustain, then the next valuable approach towards 7800 levels. If it just finds resistance at 7761 then we may see the repeat of Friday’s session and we may have some quick fall. Major move may come in second half only.

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Strategy for Nifty July future – Nifty July future will get some higher opening near 7800 levels. It may give us a feeling of higher high but due to negative divergence effect it will face resistance at 7825 levels. I just conclude that we should not trade this in first half. How will it react at top? I will update 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.