You must read previous articles and watch the given chart
carefully to understand this article completely.
For 17 July 2014: -
On 16 July 2014, FII Bought INR 621.68 crs and DII Sold INR
48.48 crs
As long it is on positive close, it cannot easy to say which
point will be ‘b’ on Elliott wave chart. Two days in a row it closed near to
the day’s high point. It was little unexpected for me that Nifty crossed 7600+
levels in short covering. Remember, there is a difference between buying and
short covering. If 7600+ were supposed to come then it should come by buying
but it came by short covering.
Well, if it is short covering then it goes great in favour of
bulls. Technical charts are suggesting that we may see profit taking at higher
levels near 7660. I am taking a caution; if it trades near 7660 then it may
cross to head towards 7725 levels. Why I am saying this is – because even yesterday
trades near 7560 goes in favour of bulls. I was not short but I missed good
opportunity to be long.
Technical support will be in the zone of 7600 to 7570 now. Wave
theory is giving a hint for brutal top and hence I prefer to be little reserve
and conservative to be aggressive.
For today’s session, I suggest to follow intraday analysis.
7660 is still seems to be under reach. As long as it is above 7570-7600 levels,
it will main a direction up. Near to 7630 goes in favour of bulls and below
7590 will favour bears.
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Strategy for Nifty July
future – Nifty July
future will on flat note. Consider 7620 as decisive support and there is no
scope of weakness as long as it is above 7620 levels. If another round of short
covering comes then it can easily hit 7700 levels. I will prefer to watch for
first 60 to 120 minutes. We may be close to be done with this recovery.
S&P 500 (USA) – Once again, S&P took a rise
towards 1985 levels but never crosses to make a new all-time high again. Technical
charts are still suggesting for resistance at 1985 but sign of shorting is
still not giving good conviction. Well, near to 1985 we should prefer to watch
but I feel that time for dip is about to come. Most global indices are on
decisive resistance levels. Few months back, I have already said that second
half of the year may go under profit taking. Most, probably, all major top will
come in the months of July itself.
