24 July 2014: Nifty Elliott wave analysis: Bearish hanging man pattern has formed but crucial technical support will be at 7750 levels. Will it break 7809 as it is so close to this level? Be cautious @ 7809!!!

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

For 24 July 2014: -

On 23 July 2014, FII Bought INR 652.40 crs and DII Sold INR 292.09 crs

Yesterday I said that no day can be better to break 7809 as all-time high. It hit 7809 as dot and slipped. Afterward it slipped hit 7752 as low before closing with a ‘hanging man bearish’ pattern. It can never be good to see this kind of top. It would have been in favour of bulls if we would have seen close above 7809 levels.

The most crucial trading support will emerge at 7750 levels for today’s trading session. It does not matter where nifty is going to start. It will be important where we close. Candle patterns are in favour of bears. Decline in volume over past few days also goes in favour of a possible top. Well, there is one thing which goes in favour of bulls and this is momentum. As long as momentum favours we cannot see price correction. It has happened many times in US market over past few years.

So, I believe that it will be better to take a cue from technical support and resistance. For today’s session 7809 is a resistance and 7750 is a support. Break of any of these two levels will give a move in that favour. Elliott wave is already saying for a possible top but surprisingly, the wave retraced by 100%. Means from 7422 to 7808 is too big to define.

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 is giving a hint for opening at 7770 to 7780 levels. This is supporting cues in favour of bearish ‘hanging man pattern’. I still suggest that break below 7740 will guide for a decisive slip now. As long as it is above 7740 it will open scope for rebound from lower levels.  

S&P 500 (USA) – Once again, US gave irritating rise with another new all-time high on S&P 500. Technical charts are suggesting for 2000 as potential target and why only 2000, it can hit as high as 2025. Time based consolidation can be treated as correction but this is time correction, not a price correction. I just want to see reaction near 2000 psychological levels.