You must read previous articles and watch the given chart
carefully to understand this article completely.
For 11 August 2014: -
On 08 August 2014, FII Sold INR 503.74 crs and DII Bought INR
456.02 crs
We saw a wild gap down on Friday session. Has it left
anything great for traders? It seems not and hence I prefer to be inactive. The
most interesting fact is that it formed a ‘trend reversal hammer pattern’ on
daily chart. We have few interesting points. First is that hammer pattern shows
for rise above 7593, which is a point of reversal in previous dip. Second is
that we have 50 DMA at 7609 levels. So, the area of above 7590 to 7610.
Once again, we have strong global cues after a hammer pattern
which is hinting for some higher gap opening. If higher opening and positive
trades takes market above 7610 then we will see a fresh wave of rise. I must
say that I am not betting that Indian market can move with global market. In
spite of hammer pattern I like to see reaction at 7610 as make or break levels.
For today’s session, I am expecting some higher opening. It
can be near to 7600 levels. Avoid first hour trade if flip – flop trades goes at
7600 as those will turn as 50-50 deal. We are in wild Geo-political situation
where things can go wrong easily. Well, but above 7610, it should be bullish.
I will update about supports in my intraday updates. I will
get better idea of sell-off during hour itself. Will sold near 7610 again or
will it revive to take a move towards 7700?
Please visit our ‘intraday updates’ to get further updates or
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Strategy for Nifty August
future – Nifty August
Future may open positive 20-30 points. Immediate resistance zone will comes at
7640 to 7655 after opening. 15 points is still bigger range for resistance. Can
it fail at 7655? Well, if it fails then it will fail brutally and it will
invite negative opening. It will be safer to be long above 7655 levels.
S&P 500 (USA) – S&P has bounced from over sold
zone. It is a definite shocker me too as I was not expecting so easy sailing
above 1925. Well, but it did and pushed bears back again for the time being. As
long as it is above 1925 area, it will try to recover. We know that whenever US
marker makes this kind of pattern then it advances move. So, one more positive
will invite hard core bulls to play their cards. Technical support will be as
follow – 1925 > 1910 > 1900
