You must read previous articles and watch the given chart
carefully to understand this article completely.
For 24 July 2014: -
On 23 July 2014, FII Bought INR 652.40 crs and DII Sold INR
292.09 crs
Yesterday I said that no day can be better to break 7809 as
all-time high. It hit 7809 as dot and slipped. Afterward it slipped hit 7752 as
low before closing with a ‘hanging man bearish’ pattern. It can never be good
to see this kind of top. It would have been in favour of bulls if we would have
seen close above 7809 levels.
The most crucial trading support will emerge at 7750 levels
for today’s trading session. It does not matter where nifty is going to start. It
will be important where we close. Candle patterns are in favour of bears. Decline
in volume over past few days also goes in favour of a possible top. Well, there
is one thing which goes in favour of bulls and this is momentum. As long as
momentum favours we cannot see price correction. It has happened many times in
US market over past few years.
So, I believe that it will be better to take a cue from
technical support and resistance. For today’s session 7809 is a resistance and
7750 is a support. Break of any of these two levels will give a move in that
favour. Elliott wave is already saying for a possible top but surprisingly, the
wave retraced by 100%. Means from 7422 to 7808 is too big to define.
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 is giving a hint for opening at 7770 to 7780 levels. This is supporting
cues in favour of bearish ‘hanging man pattern’. I still suggest that break below
7740 will guide for a decisive slip now. As long as it is above 7740 it will
open scope for rebound from lower levels.
S&P 500 (USA) – Once again, US gave irritating rise
with another new all-time high on S&P 500. Technical charts are suggesting
for 2000 as potential target and why only 2000, it can hit as high as 2025. Time
based consolidation can be treated as correction but this is time correction,
not a price correction. I just want to see reaction near 2000 psychological
levels.
