24 July 2015: Nifty Elliott wave analysis: Can we get the desired short covering rise before weekend? Technical support = 8560-8500.

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

For 24 July 2015: -

On 23 July 2015, FII Bought INR – 185.42 crs and DII Sold INR 276.69 crs

We saw trading near 8600, here and there for six days in a row but decisive breakout on higher side is still missing. This makes chart dull to trade. So far, I still believe that it should move higher on the effect of reverse H&S pattern. Although, I need to confess that it is my hope which is dominating my views. Real charting breakout will come above 8650 which has traded once yesterday.

Major support at down side is at 8560 and then at 8500. How will market shape up before last week of derivative expiry? I am still missing the short covering rise which used to come near expiry whenever market moves unidirectional for most part of the month.

For today’s trading session, I am expecting a gap down as suggested by SGX Nifty but this down side should followed by bounce. Based on reverse H&S pattern we have target at 8800-8900 which should come by end of this month. Let us see if we can get a bounce today.

Please visit our ‘intraday updates’ to get further updates or to take good advantage join paid services.

Strategy for Nifty July future – I have not trade on Nifty Future now but we have small quantity of 8600 call which we picked yesterday. My desired higher breakout has not come so far in this month. I have no clear take today for trade. I want to live with 8600 call only unless clarity emerges for trades. We gained good in first half of this month so we can afford some risk.

S&P 500 (USA) – US market is still in a range bound mode on long term chart. Since November 2014, it has neither broken higher nor lower. On one side we can say that it’s a WoW factor that S&P has sustained above 2000 for really longer time. On another side, even after that it is not crossing 2135 in last nine months. Trading average of last nine month is almost at 2100 which is almost current trading price range. One may not like this kind of words in analysis but this is reality. Best of my sense is still suggesting me that this is a toppy pattern.