You must read previous articles and watch the given chart
carefully to understand this article completely.
For 28 August 2014: -
On 27 August 2014, FII Bought INR 290.18 crs and DII Bought
INR 236.99 crs
It has given a very dull day yesterday after a gap up which
is reflecting as DOJI formation on daily chart. If we have tp give importance
to charting formation then we can found too many DOJI formations. It is a
reflection of confusion in traders mind. Traders are unable to show confidence
over next leg of rally. Nifty moved more than 400 points in 13 trading
sessions.
Even global indices are firm so far with all possible hints
for top. We have derivative expiry today with a long weekend ahead. So far,
rollover data shows that traders are expecting resistance at 8000 levels. In such
case it is hard to believe for expiry going at 8000 levels but option views may
go wrong many times in past.
For today’s trading once again, I believe that Nifty has
resistance at 7950 levels as got a hint from hourly chart. Please refer to the
given snap shot. Once it stands above 7950 then we can get a possible move
towards 7980 but it may not hit 8000 levels. Even if it hits 8000 then also it
may not sustain. Can we expect a wild expiry? It may not be so. Even after
all-time high, expiry may be dull.
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Strategy for Nifty September
future – Nifty September
future has a low at 7955 yesterday which was a dot high point day before
yesterday. This will play crucial role for today’s session. So far, opening
should come on stronger note with small gap up. If it sustain above 8000 levels
then it may try to gain a move towards 8025-8030 levels. Do not short unless it
breaks and sustain below 7955!!! Nothing is impossible.
S&P 500 (USA) – I do not need to change even single
word from my study. 2005 may remain top for short term. 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.
