04 August 2014: Nifty Elliott wave analysis: Nifty has 50 DMA support at 7574 levels. I must save before RBI’s monetary policy review tomorrow. If not then another round of heavy sell off is waiting for us. Key resistance = 7660+
You must read previous articles and watch the given chart
carefully to understand this article completely.
For 04 August 2014: -
On 01 August 2014, FII Sold INR 1072.96 crs and DII Bought
INR 1074.70 crs
I have already said that if it sustain below 7660 then we
have a possibility to see closing bear 7600. It was on dot right in second half
sell off. We saw a bounce in first half and then brutal selling. If you are not
aware then I must say that Nifty is just in striking distance of 50 DMA which
is at 7574 levels. On 14th July we were very close to 50 DMA but
saved to see a uniform bounce from 7422 to 7842. Nifty has never broken 50 DMA since
21 February 2014.
We have RBI monetary policy review tomorrow. I have no
expectation. Key rates are supposed to be unchanged. Indian market may try to
build up some optimism but those are not very meaningful as of now. If Nifty closes
below 7574 levels then we may have a chance to see levels of 7400 by this week
itself. This month trades opened on very nervous note and this can be dirty
below 50 DMA.
For today’s session, we may see opening with some initial
higher levels and the only reason is that US market not as down as it was
looking when we closed on Friday. Does this this make change in technical
outlook? Definitely not, If this market
has to recover from here then also it need to sustain above 7660 levels which
is going to be first big challenge for Monday’s trade.
Please visit our ‘intraday updates’ to get further updates or
to take good advantage join paid services.
Strategy for Nifty August
future – Nifty August
Future lost almost 55 points on Friday between 2:45 pm to 3:00 pm trades. It’s
so big and quick. Hourly chart may give a hint for pull back and which can
easily come for 25-40-50 points but no pullback has any great meaning unless it
successfully move above 7675 levels. I have a simple view, wait for first hour
of trade and then decide if it is above 7575 or not. Do not short at low.
S&P 500 (USA) – We saw small follow up of sell off
but closed well above day’s low as it was heavily oversold on hourly chart. Technical
support area is supposed to emerge near 1910. As of now it looks like only a
pull back. We may see mini pull back kind of things. It can max try to hit 1940
which will act as tougher resistance. I strongly believe that August month will
dedicated for bears. Normally, when even US market misses summer sell off, it
shifting towards August month fall. So far, beginning is supporting those
facts. This month sell off will be as dirty as 1800 on S&P.
Join the conversation