You must read previous articles and watch the given chart
carefully to understand this article completely.
For 07 July 2014: -
On 03 July 2014, FII Bought INR 950.82 crs and DII Sold INR
624.21 crs
On Friday’s session, nifty took a dive from high point to hit
exact support of 7760 and then bounced in its own style in last hour to close near
to crucial 7761. It was impressive bounce. Well, so far this rise is going on
big negative divergence and its almost double big divergence. This will not
take its effect unless the break of some critical point. I must add that we may
be heading towards another short term top. This top can either be 7761 or 7800
or 7840. I expect for the break of 7761 in today’s session if not then it will
surely play its role. So we left with two figures, one is 7800 and next is
7840.
We are in budget week. We will get rail budget tomorrow and
union budget on 10th July. After that market will enter in earning
season. Budget session will begin from today. This week will have some crucial
value. It looks like we will get short term top by this week only if not today.
7761 – is a decisive point.
For today’s trading, I prefer to watch market reaction near
7761. If it crosses above 7761 and sustain, then the next valuable approach
towards 7800 levels. If it just finds resistance at 7761 then we may see the
repeat of Friday’s session and we may have some quick fall. Major move may come
in second half only.
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Strategy for Nifty July
future – Nifty July
future will get some higher opening near 7800 levels. It may give us a feeling
of higher high but due to negative divergence effect it will face resistance at
7825 levels. I just conclude that we should not trade this in first half. How will
it react at top? I will update during trading hours.
S&P 500 (USA) – This is a great momentum which has
generated above 1970. We got close at 1985 and it is looking to hit
psychological 2000 marks. Even DJIA closed above 17000 marks. S&P still has
a room to move 15 points more before any correction. Trading pattern suggests keeping
high low as stop loss to hold long. I am not adding anything more on analysis.
I am simply waiting to see 2000 levels. It’s going to be historic event.
