You must read previous articles and watch the given chart
carefully to understand this article completely.
For 27 August 2014: -
On 26 August 2014, FII Bought INR 364.72 crs and DII Sold INR
259.18 crs
We are just a day away from derivative expiry and I mostly
avoid these days for trading. We have a coincidence for the day, today is 13th
trading session from recent low of 7540. I still believe that Wolfe wave will
play its role below 7850 but where is 7850 now. It has saved even yesterday and
closed above 7900 levels.
Take a note that market has done nothing from past six
trading sessions except ranging at 7900 here and there. It is just making things
tougher for traders to conclude. Unless it breaks 7850 it will not easy to say
even for top. It is surely going to be wild for two trading sessions, one is
today and another is tomorrow.
Option mechanism is suggesting for strong support to emerge at
7800 which has higher open interest but this view may change at the breaks 7850
on Nifty spot. On higher side 7930 and 7970 should still be a tougher
resistance to trade.
For today’s trading once again, I will prefer to watch for
levels of 7850. Yesterday’s low was 7862. I have already expressed my view that
break below 7850 will give alarming signal for fall. We have seen some bleeding
mid cap stocks in past few weeks. It has added few more names yesterday. This kind
of phenomenon should result a top on blue-chip indices too. I will not able to
name level as top unless Nifty breaks 7850.
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Strategy for Nifty September
future – Nifty September
future has a low at 7906 yesterday. It bounced at a time when it was looking
for a drag below 7900. It has hit a high at 8015 two days back. Pattern analysis
is suggesting for a possible pullback again from a high point on intraday
levels. It will face resistance at 7980 and then at 8020. Take a note that it
may opening 25-30 points higher.
S&P 500 (USA) – S&P chart is still bullish but
a short term pull back it still due. Remember that now it is 100 points up move
without any price correction so it may give a correction now before moving
higher. It is just running higher and higher with higher top. If it breaks 1990
in the lower side then it will be a confirmation for short top. I still believe
that US indices are running near short term top itself but it just needs few
definitions.
