You must read previous articles and watch the given chart
carefully to understand this article completely.
For 18 July 2014: -
On 17 July 2014, FII Bought INR 1912.42 crs and DII Sold INR
1316.02 crs
It was said for yesterday that we may see top near to 7760
levels and this may end up as point ‘b’ on Elliott wave chart. So, recovery has
done. After that we saw bloodbath on Wall Street which was expected in past few
days. It slipped over a percent. I have not added short on Indian market but definitely
we added short on S&P Future which had given a sell yesterday before
opening.
Above cash buy by FII and cash sell of DII shows that we saw
a tug of war between bulls and bears. I was expected a top to emerge as 7660
but this is still my expectation. We have not shown anything on Indian chart
yet to say for top. Now, we may see gap down in Indian market due to US
hangover. If this gap down maintains till close and we slide further then it
will be named as bear gap down. Now, if this happens then I would say, yes, it
has top at 7656. Then, it will start a slide again towards 7400 levels.
Technical support will be in the zone of 7600 to 7570 now.
Wave theory is giving a hint for brutal top but this will see confirmation only
by today’s closing. Take a note that it has not given confirmation yet.
For today’s session, I suggest to follow intraday analysis.
7660 is a tougher resistance to cross. Bear threshold will be at 7590 levels. If
it breaks sustain below 7590 then we will head for panic sell off.
Please visit our ‘intraday updates’ to get further updates or
to take good advantage join paid services.
Strategy for Nifty July
future – Nifty July
future will open down as indicated by SGX Nifty. Consider 7620-7600 as decisive
support and there is no scope of weakness as long as it is above 7600 levels. What
I want is – a break below 7600 and this gap down must sustain then only we can
name as top. Let us wait for opening.
S&P 500 (USA) – So, after a long waiting it came in
just a single day but it has yet to break below 1950. I feel that bears got
their opening. That who was waiting with shorts has shown patience. Once, it
breaks below 1950 then we will see a slide towards 1915-1900 levels. Well, I am
concluding US market for long term top if we see levels near 1900 levels. Remember,
it is heading towards 1950 as of now. So, we need more confirmation to conclude
for long term top.
