You must read previous articles and watch the given chart
carefully to understand this article completely.
For 23 July 2014: -
On 22 July 2014, FII Bought INR 412.03 crs and DII Bought INR
59.23 crs
I have already said that wave theory failed to give top. Well,
I need to make a fresh marking. We should be in corrective wave ‘b’ of subwave
a-b-c but it looks like a progressive wave. I always give important to price
and price chart which is still moving higher. I cannot ignore momentum technical
indicators but right now market may head towards 7800-7860 levels backed well
by reverse H&S pattern on hourly chart.
At some point, top will emerge but confirmation of such top
formation will come only if we close below 7660 levels on daily chart. This condition
looks tougher after yesterday’s gain. I can say that it’s not easy to sail
against wave theory indication. I am assuming for almost 100% retrenchment of
fall and so we may see 7800-7808 levels.
I still quote this week as most crucial one. Out of five days
of a week, today is going to be most crucial trading session. All global cues
are strong to good. Nifty has already build momentum yesterday in closing hour.
So, if it has to cross 7808 levels then nothing can be better than today. Trading
technical support will be at 7730 and then at 7700.
Let us see. Keep your figure cross. Be careful near 7800-7809
levels.
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Strategy for Nifty July
future – Nifty July
future will open higher near 7800 levels. Higher opening demands caution but it
looks like that the day will go in favour of bulls again. If that’s the case
then we may see levels of 7830-7850 also. If this is a breakout with real buying then 8000 can be
visited by expiry day. Strong technical support will be at 7750 and 7720
levels.
S&P 500 (USA) – It hits again 1985 levels. The zone
of 1950 to 1985 is just a zone of oscillation. Now, it’s more than a month that
S&P is running here and there. Technical charts are saying different than
wave theory, just like Indian market. If I overlap few chart study having same
behaviour then it seems that we will get a break above 1985. I make a change in
my view. If it closes above 1985 then it can easily move to hit 2025 levels. Although,
it looks difficult but its market choice. Note that we still have to close
above 1985 levels on dot. We have just few days left and so I believe that these
last few days will be furious to trade.
