You must read previous articles and watch the given chart
carefully to understand this article completely.
For 03 September 2014: -
On 02 September 2014, FII Bought INR 672.81 crs and DII Sold
INR 167.85 crs
It has crossed 800 marks on Monday and it has crossed 8100
marks on Tuesday. It’s too much for now and goes in heavily overbought zone. Few
days back I have quoted for a possible Elliott wave target at 8132 and it hit a
high at 8102. In between we got a Wolfe wave formation but trigger point of
7850 never came. In fact, formation and possibility of Wolfe break has
misguided me also and I left out in major part above 7970.
If I have to believe for 8132 to come exact then it can come
on the cross above 8102 which is a life time high, tested yesterday. I see
lesser chance. I dare to raise a point based on MACD. It is not justifying. One
can conclude himself. Whatever coming above 7970 has a greater chance to retrace
by 100% in just few days. As long as it is not giving top sign we need to quote
for some crucial resistances or target too. Tentative top may come in the zone
of 8132 to 8140, as its 78% of wave [1] as quoted in chart. Well, based on
Elliott wave, I can say that this is not a compulsion to hit.
Momentum charting is suggesting me that price is perhaps key
driver of this rise. People have money and hence they are buying like endless
tomorrow. I can say that use this life time high to clear your bad portfolio.
Charting support is now at 8050 levels. As long as it is
above 8050, it can recover. Well, but it cannot recover if it breaks 7950. We
may get many answers by today’s trading session. Fall can be bad on weak mid
cap and may be even on Metal stocks.
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Strategy for Nifty September
future – Nifty September
future may open flat in the zone of 8120 to 8130. I cannot think that Nifty
future can sustain this kind of higher levels for rest of the month. It is
heavily over bought and it need to a correction. It is equally true that 8000
to 7970 may be a limiting base so far for any dip as bulls are ready to catch
all drops. On higher side 8145 and 8180 are meaningful resistances.
S&P 500 (USA) – I will say that things are still
suggesting for long term top. There may be little more push left for S&P
but it may not cross 2020 levels. If I am saying long term push then it means
that I am not looking the figures above 2000 for rest of the year. So far, it
is above 2000 and it may be just those rare days. Top confirmation point will
be once we close below 1990 which may happen by this week itself. I say, add
shorts with stop loss just at 2020.
