You must read previous articles and watch the given chart carefully
to understand this article completely.
For 31 July 2014: -
On 30 July 2014, FII Sold INR 381.66 crs and DII Bought INR
515.65 crs
It has respected every technical support and violated all
technical resistance for July month. It has respected June month high which was
at 7700 levels. Most important is that it closed with very small gain from low
and closed with short covering. All happened just a day before derivative
expiry. Normally, short covering based rise may try to sustain. If this is the
case then we have another possibility of new all-time today.
Top may be unstable again and it may face selling at high
point. If short covering again hit then the point of selling to emerge can be
as high as 7900 levels. I can easily say that any stock market is unpredictable
near to its derivative expiry and Indian market is no more different from
others.
We saw some good action in selected mid cap and small cap
stocks too. FII has sold in cash market after long time. This is a negative cue
for today’s trade that cash figures were negative even after short covering. This
is prime reason that I am saying for selling from a high point but I have no
idea about that high point. Can it be 7840?
For today’s session, we may get some stable to silent
opening. Technical support will be at 7770 to 7750 levels. I still believe that
it may try to move towards 7840 to make some decision. One thing is for sure,
above 7843, it will shoot up to 7900 levels or a move towards this.
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Strategy for Nifty August
future – Nifty August
future is giving a hint for opening at 7820 levels which is still good opening
at least after yesterday’s short covering. As long as it is above 7800-7990,
you can expect a move towards7870 to 7890 levels. Take a strong note – it derivative
expiry and it may not be easy to deal. Most time, I avoid such days for trade. Be
cautious at higher levels.
S&P 500 (USA) – It moved here and there and closed
flat so study remains same for the day. It is not moving anywhere since June 24th
2014. It stuck in the same range. Once again it came below 1970 and it may head
towards 1956 to 1950. I will convince only at decisive break below 1950 to say
for confident short. So far, topping formation is giving short at tops near
198X and 199X but those are mild short signal. Let us see what can come now.
