You must read previous articles and watch the given chart
carefully to understand this article completely.
For 21 July 2014: -
On 18 July 2014, FII Bought INR 574.47 crs and DII Sold INR
283.17 crs
Nifty end up at 7660+ levels which were supposed to be a
levels for top to emerge. I have suggested for crucial threshold of 7590 to say
for weakness but it has saved successfully. Now, above 7660, it may try to
advance towards 7700 to 7725 levels.
Very early this month, I have said that a top formation may
come by July month. So far, I still expect same. If this bounce has so much
strength then it will probably end with double top. Elliott wave ‘b’ can emerge
sooner this week. It has surpassed 7570 then 7660 also. Picture changed when
short covering came to break 7570 on higher side.
Once again, be cautious at higher levels. For today’s
session, one can expect trading support at 7650 and a trend reversal support
will be at 7590 levels. It may open higher by 25-30 points so this gap will
play crucial role. It is not going to be simple trade as more complex technical
behaviour will emerge sooner.
Well, charting has totally different picture. Elliott wave us
suggesting that top should come while charting pattern is suggesting for a
quick fire 200 points of rise. Yes, it means we may visit 7800-7860 levels. Hence,
I am marking this week as most crucial one.
Week will end either at 7400 or at 7860. I can able to
present clearer picture with the progression of week.
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Strategy for Nifty July
future – Nifty July
future will open higher near 7690. This should be the level above Friday’s
high. If this happens then we may have hardly anything left to deal on higher
side as it will open on resistance. Well, as long as it is above 7680 it will
try to take a approach towards 7725-7730 levels. I opt to buy a dip with
smaller stop loss.
S&P 500 (USA) – Its played with 1950 support again
on last trading day of the week and closed with mammoth bounce. It is again in
the striking distance of 1985 but still it will not easy to cross. In reality
week ended at the point where it had begun. So, it is another fresh week but
study remains same. A top need to emerge in the zone of 198X,199X or max by
2000.
