You must read previous articles and watch the given chart
carefully to understand this article completely.
For 22 July 2014: -
On 21 July 2014, FII Bought INR 161.17 crs and DII Sold INR
181.16 crs
Nifty traditionally took a pause near another resistance. Only
difference is that this time it was 7725. I can still say that conviction is
that we may see some dull trades near resistances now. Elliott wave is giving
me a sense of resistance at 7725 and it needs a close below 7660 for
confirmation. It is saying that we are almost near to end of wave ‘b’.
We should less care about those indicators or theory which
market is not following. Last its price which pays. Right now, Elliott wave is
giving resistance after resistance and market is crossing all. Charting pattern
shows that lots of steam still left in the market.
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. Complex trading
behaviour invites more impulsive moves.
Take a note that market may take moves only in second half
now. Usually, first half remains dull. It does not matter why this happening is.
Unless it closes below 7660, we may not have conviction for correction call.
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 7710. This should again act as resistance. 7720-7730 will act as immediate stiff
resistance. In the down side it will get support at 7670-7660 levels. Shall we
trade in the zone of 7660 to 7730? My answer may not be affirmative. Let us see
what can come near Nifty spot resistance of 7725.
S&P 500 (USA) – It closed in red. US indices are
moving like a pendulum in the zone of 1950 to 1985 ranges. It slips from high
and rising from low of the range. So far, it is not giving any clear signal. I am
anticipating a top formation but threshold support of 1950 has not broken yet. It
is little irritating now. I still believe that July month top may emerge as a
top and a sell off will hit. Nothing great to add for the day.
