You must read previous articles and watch the given chart
carefully to understand this article completely.
For 19 June 2014: -
On 18 June 2014, FII Bought INR 366.18 crs and DII Bought INR
318.15 crs
We heard that union budget may come in second week of July. Government
is planning for big FDI approval for Indian railway. So, railway stocks will be
on lime light for the day. Now, apart from this, Indian market may get boost by
rise in US market last night.
Charts are not saying that we are going to get a stable rise
as we have a heavy supply line on hourly chart. I have warned yesterday also
for higher levels. We saw a sharp dip from top on Iraq concern. I am again
repeating that levels above 7600-7650 will not sustain in market. Elliott wave
study is still hinting for 7400-7300 zone for Nifty before Union budget.
Now, let us concentrate the charting pattern. Based on
Elliott wave theory we got a top at 7700 levels. If I draw it for target then
we should get minimum of 7400 levels which can be violent in the area of 7400
to 7300. Hence, I believe that Nifty can enter in the zone of 7400-7300 before
giving fresh rebound.
For today’s trading technical support will be at 7530 and
7485 levels and resistance will be at 7600 and 7650 levels. There is a
possibility of some higher opening. I am planning for any long trade unless
some strong buy will emerge. This market is just heading to trap bulls at
higher levels and so one has to be cautious. Remember, if it is trapping bulls
at high then so it is trapping bears at low.
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Strategy for Nifty June
future – Nifty June
future may open near 7590 levels as suggested by SGX Nifty. Technical charts
are suggesting for fresh long only if it can surpass 7625 levels with volume. Do
not carry away from higher opening. In fact, we may not see 7600 levels
sustaining. Even if it sustain then also keep your eye open to trade. Market will
be highly volatile from now to union budget.
S&P 500 (USA) – S&P bounced on Fed comment over
economy. WoW!!! It hit 1956 again. Consistent trade above 1956 will give levels
of 1970-1980 with big negative divergence. Fed chairperson said that economy is
improving as they trimmed bond purchase. It may be true but I am not able to
digest. Bond purchase trimming may not have anything to do with growth of
economy. Economy always improves by its own. Factors may just support for
little. Let us see if S&P sustain. I doubt!!!
