08 July 2014: Nifty Elliott wave analysis: It may attempt to break 7800 again. If it breaks and sustain then we will see 7840 as next possibility. Failure at 7800 will make it dull again.

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

For 08 July 2014: -

On 07 July 2014, FII Bought INR 198.57 crs and DII Sold INR 85.22 crs

It was dull day even after crucial crossover of 7761. For most part of the session it was above 7761 and still unable to hit at 7800. I still believe that it will take that attempt today. Suppose if it hit 7800+ levels in first hour then it should try to make attempt for 7840 which is a possibility based on Fibonacci extension.  

We are in budget week. We will get rail budget today 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.

For today’s trading, technical support will stand at 7750. We may get random first half. Series extension suggests that we may get some good trading opportunity from 12 o’clock to 2 pm. traditionally rest other hours will be dull for trade. Do we have scope to hit 7840 today? Yes, as long as Nifty is above 7750, all bullish views are open. One should be cautious if toppy formation comes at 7800 or 7840.

As I said earlier, cross over above 7840 will open the scope for the test of 8000 levels. Whatever top has to come, it will come by this week only. In my view, it is possible to see trades above 7800 today. I may prefer to trade only in second half.

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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. My study is same of yesterday.

S&P 500 (USA) – It was a matter of one negative close and we got that yesterday. With this, I can say that probably a short term correction has started. Question is not that we are getting it from 1985 or from 2000, situation remains same. Major momentum indicators are on triple divergence. What we need is just a follow up selling. If we get sell off today also then we may be close to get a confirmation. Is it coming?