09 July 2014: Nifty Elliott wave analysis: So, we exactly got the short term top in the range of 7800-7840. Hope you must have enjoyed the fall. This sell off may have target at 7400 but mini pullback bound to come. Use those for short!!!

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

For 09 July 2014: -

On 08 July 2014, FII Bought INR 422.72 crs and DII Sold INR 399.56 crs

So, market welcome in its own style to the reality test of Modi Sarkar on Rail budget. Sensex tank over 500 points. I always have a question when anyone talks about FDI. What you think foreigner will come to invest in your countries for charity? No, never. They invest only if they see the scope and first need is to make our country suitable for FDI. How much FDI we got in UPA period? I feel sorry but bitter truth is that it will not easy to manage money to fulfil the dreams of rail budget. Perhaps, market punishes rail budget due to same reason.

Well, now second litmus test will come tomorrow when Modi government will present its Union Budget. It is very obvious that it may be better than Dr. ManMohan singh government but will it able to meet with the dream which market saw from past more than six months. Buckle your seat belt and be ready for roller coaster ride in market tomorrow.

I always says that market make a primary direction to give you a hint for the outcome of coming event. Unfortunately, charts are not in favour of bulls before budget. I have forecasted for a short term top in the range of 7800 to 7840 and we got a high yesterday at 7808 then a free fall, a blood bath and a panic sell off hit the market.

For today’s trading, technical support will stand at 7590. We may have a mini pull back but we are now far from being comfortable to trade long. This market is opening a big scope for slide. Elliott wave target may be at 7400 ranges. I am expecting a silent and nervous trading today and I prefer to ignore this kind of day for trades.

We have successfully forecasted for a short term top in the range of 7840 to 7800 levels. Many have asked me for the validity period of this top. Well, it can be valid at least for tomorrow also. Charts are saying that we may not see 7800 for unbelievable duration. Either it can break by tomorrow or not sooner?

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 will get some silent to nervous opening. I hold my shorts which I took at 7800 levels. Well, I will not prefer to add short at lower levels. I will prefer to judge the weakness on pullback. If pullback comes and gives me some signal for weakness then only I will add fresh short. What that level can be? Fine, that can be 7670!!!

S&P 500 (USA) – It goes great as the road map suggested. We got second day sell off and close near 1960. It is almost confirming that we are on short term top. Take a note that this short term top may become long term top too. Technical charts are now confirming for the move towards 1925 levels. I just like to use pull back and mini pull back to short. In my view one mini pull back is coming today which will fail before 1970.