You must read previous articles and watch the given chart
carefully to understand this article completely.
For 16 July 2014: -
On 15 July 2014, FII Sold INR 3.40 crs and DII Bought INR
471.78 crs
On Elliott wave chart,
I was in search to draw a point ‘b’ which should be on upward side. We got first
positive close after five days of fall. So far, close came in expect line near
7530 but it was more shocking during trading hours. It took sharp rebound from
its intraday low. At one time low was 7459.
If I consider the wave structure from its preceding down wave
‘a’ then we has 38% retracement coming at 7570. So, for today’s session if
trades sustain above 7530 then we are likely to head in the range of 7570 to
7600. I can say that fall will hit from higher levels to form the next down
wave ‘c’. So, we should be cautious near resistance.
Technical support will be at 7500 > 7460 levels. Do take a
note that we cannot ignore the development of negative divergence on NIFTY
daily chart. This bounce is a result of hourly oversold zone. If sell off comes
from high again then we may see a possibility of Nifty heading towards
7200-7300 levels. We may get many answers by today’s session.
For today’s session, I have a technical strategy to trade
long as long as it holds above 7530 but I like to ignore this option. I will
rather prefer to trade short from high plus weakness which may come in second
half.
My projected timing for
short trade is = 12:20 pm to 02:00 pm. Trades may not soft till 11:00 am, it means it may stay
positive till 11 am at least. This time study is irrespective of technical
levels. Do read my intraday updates to know more technical levels to act or
better opt our subscription.
Technical resistance = 7570 < 7600
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Strategy for Nifty July
future – Nifty July
future will open strong to positive start. As long as it is above 7550, it may
try to take a move towards 7570-7600 but this is not a very compulsive condition.
Still, it has scope to trade soft long in the morning minutes. Even if dip has
to come then it will come in second half. Today’s closing will be decisive to
mark point ‘b’ on Elliott wave chart.
S&P 500 (USA) – It was interesting trade yesterday
night. It hit a high at 1982.50 and then slipped to hit 1965 before closing at
1973. Clearly, bears took charge near the resistance of 1985. I can sider this
as the beginning of sell off. We need to know that 1950 is still a stiff
support and bulls will be in race as long as it is above 1950. So, first
question is – Will it break 1950 this time? May be yes. Opt shorting the range
of 197X to 198X.
