11 July 2014: Nifty Elliott wave analysis: Now, focus will go on quarterly earnings. Nifty will face stiff resistance at 7605 levels while support will come only at 7480 levels. Elliott wave Primary trend = Down!!!

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

For 11 July 2014: -

On 10 July 2014, FII Bought INR 161.55 crs and DII Sold INR 4.89 crs

We make mammoth winning trades on Nifty yesterday with prediction of bounce and bloodbath as well.  Fine, that’s the history now. I have a simple message after going through budget details. NDA need to remember that they got a mandate to prove themselves different from UPA. They are not here to even compare themselves from UPA. They are here to deliver promises. It’s just note make a sense to give plan for 10 years and 20 years in a philosophical ways. My biggest worry towards this budget is excessive expenditure and no hint about the source of funds. Please do not tell me that FDI can give any money.

Well, hope is hope and here hope means rally in stock market. We can still hope that Prime minister and finance minister may have some magic in implementing their plans. If they do then we make be saved. If not then prepare for disaster. Now, Indian stock market will enter in earning season and market will focus on those. Infosys will kick start the season.

I need to revise few technical supports. These are – 7479 > 7399 > 7275.

Based on Elliott wave theory we are still living with a possibility of a move towards 7400 levels sooner or later. Bounce will get resistance at 7605 for intraday. Are we really going to get any sustaining bounce? I doubt after yesterday’s sell off in post 2 pm hours.

For today’s session, I have a strategy to short weak stocks near 7600 resistance on Nifty, if comes as we may get better risk reward ratio. Take a note that if Nifty able to stand above 7605 levels then I will go off to my short. I do not have big short as after 200 points quick dip, I took most of my shorts.

I talked about primary trend yesterday. Unfortunately, it looks down now. This is not new after predicting 7800-7840 range for short term top. I have another simple warning for traders and investors do not invest money for medium and long term. Go and sit in cash. If you do not listen this then chances are very high that you will burn your fingers.

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 still have a threshold at 7570. Bulls are on back seat now. Nifty future may start near 7570 levels but it will face resistance on every step. In down side, it can easily retrace towards yesterday’s low. It’s alarming. For intraday trade, use some bounce to short and plan to short near 7600 as this will give better risk reward ratio. It is advisable to cross check my intraday updates before executing trades or better be a subscriber to get clear call.

S&P 500 (USA) – I was almost right for a bounce towards 1970 and then fall again. We saw a bottom at 1952 and then S&P got intraday bounce. Remember, US has strongest bulls of the world and they will not give up easily. The bounce from 1952 to 1969 is an indication that bulls are still in the race. In view, bulls are close to lose their race this time. As I said earlier, I am repeating. Short the rise, anything above 197X-198X-199X.