08 July 2015: Nifty Elliott wave analysis: Bulls has failed to give follow up trade. Key support for Nifty is @ 8480 and then straight at 8380 !!!

You must read previous articles and watch the given chart carefully to understand this article completely.

For 08 July 2015: -

On 07 July 2015, FII Bought INR – 23.54 crs and DII Sold INR 94.71 crs

I booked my long at 8540 which we have added at 8410. Afterward, we prefer to short Nifty July month future at 8540-8545 levels as momentum were settling on lower side yesterday in a choppy trade at top. Take a note that Nifty is still above technical support of 8480. If it sustain below 8480 then we can see a fresh dip towards 8400 levels too.

As we still have positive divergence on some key momentum indicators we can expect bulls to take few more attempt from lower levels. Indian market has shown better resilience but it does not mean that it will sustain with rise. In may be the case that it may fall less.

For today’s trading session, we are going to see a gap down as indicated by SGX Nifty. If it really go wild like this then today may be another big down day. I like to see if it can react at 8380 levels as support. If it breaks then we can see free fall. It is still a big question if it can bounce from low. Bulls failed yesterday to provide follow up buying. Let us see if bears can give follow up to their trades.

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Strategy for Nifty July future – Right now SGX Nifty is quoting for 95 points down. I have updated on my twitter that 8540 is a zone where we preferred short. My key point to take profit will be at 8400. As we already have forwarded short so my first intension will be decide where to book profit. I am not sure if this time also it can give a buy at 8400 levels. Be cautious.

S&P 500 (USA) – I have already said yesterday that we are not buying US indices from low. Just check the day’s range. It has recovered from low and closed strong but on daily chart it is still weak. This bounce can also be sold with some caution. Technically 2090 to 2100 will offer resistance before a fresh fall. I still believe that July will be a decisive month for trade. Short on bounce.