14 July 2014: Nifty Elliott wave analysis: Continuation of sell off will give us targets of 7200 with support at 7118 by this week. From 7460, use sell-on-rise strategy only for first half of this week.

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

For 11 July 2014: -

On 11 July 2014, FII Sold INR 723.48 crs and DII Sold INR 44.93 crs

We are in a new week and perhaps you are away that Indian market has closed with biggest weekly loss of past many months. So far, 7808 looks to me as a short term top. Many mid cap and small cap stocks took massive rally in post-election days and those were the hint for top coming sooner. Can we say that we are in big trouble sooner? Not really, so far it is just a short term correction.

In clear language as long as NIFTY is closing above 7118, nothing is there to worry about. 7118 is still 350 points away. Right now, we need to deal with a support turn resistance at 7470 levels. As long as Nifty is staying below 7470, it is opening room to hint levels of 7400 to 7390.

Possible intraday support will be only at 7390 to 7400 levels. I have already said that based on Elliott wave theory we are still living with a possibility of a move towards 7400 levels sooner or later. It was said before the correction begun from 7808.

Real and genuine question is to talk about the possibility of hitting 7200 to 7118 levels. Very clearly, if this has to hit then we may see this levels by this week only. Hence, it is most crucial week to trade.

For today’s session, I have a strategy to short index on bounce as bounce is going to fail at higher levels. It would be better if we get some levels near 7470. If not then, below 7470, it is just a sell. Do you that that hourly charts make a primary trend on down side in post budget speech and Friday’s sell off were just a continuation of that part.

Technical resistance = 7479 < 7525

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Strategy for Nifty July future – Nifty July future will open on nervous note will all possibility of hitting lower. I can say it very frankly that Nifty can skid lower this week and this may be another bad week after past bad one. Technical charts are suggesting to short NIFTY on any bounce from 7500 to 7510. Prepare to see levels of 7430-7400 sooner.

S&P 500 (USA) – It took another intraday bounce form support area of 195X and closed just near to 1970 levels. This leaves bulls with some hope but this will end sooner. S&P chart is confirming that break of 1950 is very much possible and it will head lower this week towards the levels of 1925 to 1910. So far, it is a silence near all-time high.  It is important to note that it is just near a percent away from all-time high point. I like to add short on bounce but bounce must give me toppy formation.