23 July 2015: Nifty Elliott wave analysis: Follow up buying may have potential to take it to 8800 levels before month end. Do not short unless Nifty breaks 8580 levels.

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

For 23 July 2015: -

On 22 July 2015, FII Bought INR – 450.32 crs and DII Sold INR 351.77 crs

I was expecting this bounce from near to 8500 levels as key support were at 8480 which was saved successfully. Closing was impressive yesterday. We have five more trading sessions before expiry including today. Somehow, Elliott wave charts are denying any big possibility of fall and the strength of reverse H&S need come in effect.

Technical charts are giving a view that as long as it is above 8580, it may try to attract for one short covering rise before the end of this rally. Now, above sentence is not very clear to me also as short covering cannot be a compulsion for any rally. It just depends on the net outstanding position in the market. This is just my hope.  

For today’s trading session, I am expecting a gap down. This gap down may be an opportunity to buy only. I am not very sure before trading hours. My first objective for rest of the month is to get target based on reverse H&S. My minimum target is 8800 levels. I took yesterday’s lower trade as action to wash out weak bulls.

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Strategy for Nifty July future – It is not easy to conclude for trade right now. I tried long yesterday which works but lost by shorting in second half. Shorting was a mistake yesterday although we may see lower opening today. I will just look for an opportunity to add long. As long as 8600 holds, do not short this market.

S&P 500 (USA) – Resistance is still applicable but dip is also not getting momentum. So for the time being we may see market trading in a range. This range may be from 2110 to 2135. Let it go in this way only. There is no need to trade in this range. Since November 2014, it just trade in the range without any decisive breakout. Indian market will give better trading opportunities.