23 July 2014: Nifty Elliott wave analysis: No day can be better than today to break 7809 as all-time high. Will it make? If yes, then it can hit multiple higher levels by expiry day next week. It may challenge 8000 too !!!

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

For 23 July 2014: -

On 22 July 2014, FII Bought INR 412.03 crs and DII Bought INR 59.23 crs

I have already said that wave theory failed to give top. Well, I need to make a fresh marking. We should be in corrective wave ‘b’ of subwave a-b-c but it looks like a progressive wave. I always give important to price and price chart which is still moving higher. I cannot ignore momentum technical indicators but right now market may head towards 7800-7860 levels backed well by reverse H&S pattern on hourly chart.

At some point, top will emerge but confirmation of such top formation will come only if we close below 7660 levels on daily chart. This condition looks tougher after yesterday’s gain. I can say that it’s not easy to sail against wave theory indication. I am assuming for almost 100% retrenchment of fall and so we may see 7800-7808 levels.

I still quote this week as most crucial one. Out of five days of a week, today is going to be most crucial trading session. All global cues are strong to good. Nifty has already build momentum yesterday in closing hour. So, if it has to cross 7808 levels then nothing can be better than today. Trading technical support will be at 7730 and then at 7700.

Let us see. Keep your figure cross. Be careful near 7800-7809 levels.

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 open higher near 7800 levels. Higher opening demands caution but it looks like that the day will go in favour of bulls again. If that’s the case then we may see levels of 7830-7850 also. If this is  a breakout with real buying then 8000 can be visited by expiry day. Strong technical support will be at 7750 and 7720 levels.

S&P 500 (USA) – It hits again 1985 levels. The zone of 1950 to 1985 is just a zone of oscillation. Now, it’s more than a month that S&P is running here and there. Technical charts are saying different than wave theory, just like Indian market. If I overlap few chart study having same behaviour then it seems that we will get a break above 1985. I make a change in my view. If it closes above 1985 then it can easily move to hit 2025 levels. Although, it looks difficult but its market choice. Note that we still have to close above 1985 levels on dot. We have just few days left and so I believe that these last few days will be furious to trade.