You must read previous articles and watch the given chart
carefully to understand this article completely.
For 08 July 2014: -
On 07 July 2014, FII Bought INR 198.57 crs and DII Sold INR
85.22 crs
It was dull day even after crucial crossover of 7761. For
most part of the session it was above 7761 and still unable to hit at 7800. I
still believe that it will take that attempt today. Suppose if it hit 7800+
levels in first hour then it should try to make attempt for 7840 which is a
possibility based on Fibonacci extension.
We are in budget week. We will get rail budget today 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.
For today’s trading, technical support will stand at 7750. We
may get random first half. Series extension suggests that we may get some good
trading opportunity from 12 o’clock to 2 pm. traditionally rest other hours
will be dull for trade. Do we have scope to hit 7840 today? Yes, as long as
Nifty is above 7750, all bullish views are open. One should be cautious if
toppy formation comes at 7800 or 7840.
As I said earlier, cross over above 7840 will open the scope
for the test of 8000 levels. Whatever top has to come, it will come by this
week only. In my view, it is possible to see trades above 7800 today. I may
prefer to trade only in second half.
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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. My study is same of
yesterday.
S&P 500 (USA) – It was a matter of one negative
close and we got that yesterday. With this, I can say that probably a short
term correction has started. Question is not that we are getting it from 1985
or from 2000, situation remains same. Major momentum indicators are on triple
divergence. What we need is just a follow up selling. If we get sell off today
also then we may be close to get a confirmation. Is it coming?
