You must read previous articles and watch the given chart
carefully to understand this article completely.
For 03 July 2014: -
On 01 July 2014, FII Bought INR 856.35 crs and DII Sold INR
774.66 crs
It has moved above 7663 in a gap up and then successfully
crossed above 7700 levels. Since then there is no stopping and closing was also
stronger than ever. I have already said that if it crosses 7700 marks then it
will violate A-B-C corrective pattern and that’s too with big negative
divergence. Equally, one must note that it’s lastly “Price” which pays. So, how
Elliott wave looks like after 7700? Here it is,
It has strongly generated a strong wave reversal with big
negative divergence. Divergence will take its effect only after few negative closes.
So far, chart says that Nifty may hit 7800-7840 as strong possibility. As long
as Nifty is above 7685 to 7660, trading direction will be fully up.
So, market will be on strong side as long as it holds 7660 or
coming near to 7840. One must market that it may still have 100 + points more
on higher side. Also, it is looking has a break of flag pattern which is
bullish. So top can still far away. This must be a pre-budget rally.
While concluding with technical indicators and Elliott wave,
I must say that it is only “PRICE” which pays in stock market and it is always
my prime focus. The “PRICE” is up and rising. So, basic thing, “PRICE” is up
and primary up trend has established so price is likely to be up. RSI has a big
negative divergence which will hunt my mind to be cautious. In fact, RSI is as
ugly as bullish NIFTY. It’s not very rare, in general rise always become very
rapid in this kind of pattern and indicators want to match with price.
For today’s trading, one can prefer to buy some intraday dip
and it will be good if it comes near 7700 levels. On higher, side 7800 may be
in the test in a day or two or three.
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Strategy for Nifty July
future – Nifty July
future will open well above 7760 levels. I like to wait for decisive dip to buy
with my stop loss at 7700 which will not change in any circumstances. It will
be good if I get a dip around 7720 to buy. I say, price is brutally up and it
is expected to be up till budget.
S&P 500 (USA) – It was just 4 points range of
trading throughout the day. This is what I say that steam is running short
after every rise and there is no feeling of fresh buying. It’s like market is
dragging higher rather than running higher. It means that market is forcing traders to be
long but it remains choppy. I still say, psychological 2000 may be on hunt. It can
either hit or miss by small margin. Before 2000, it can 1980 as a hurdle. Trading
support for the day will be at 1968 and then at 1956.
