You must read previous articles and watch the given chart
carefully to understand this article completely.
For 27 July 2015: -
On 24 July 2015, FII Bought INR – 6.62 crs and DII Bought INR
196.38 crs
We have not seen charting breakout above 8650. It seems that
Reverse H&S pattern is losing its shine. We still have a support at
8480-8470 levels which is n-line for reverse H&S pattern. I have a view
from current levels of 8520. Expiry can either go around 8300 levels or at
8700+ levels. It means that we can expect a wild swing in market this week.
Remember, we are in derivative expiry week.
I have no call right now but issuing about warning for
massive volatility. Traders need to be cautious for odd moves. Can it violate “Reverse
H&S”? Yes, it can if it breaks the support of 8480-8470. History suggests
that even such kind of reverse H&S can fail for 18% of the time. If it
sounds too bearish for you then I like to quote that it’s only a warning call,
not a bearish call.
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 support at 8480-8470. If it opens in that range then
only should wait for clear moves to emerge. Has this market turned to
Sell-on-Rise? I cannot deny with great confidence. Below 8480-8470, we can have
reasons to expect 8300. On higher side we need to see it above 8570 to add some
degree of confidence for long trades.
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Strategy for Nifty July future – I have not trade on Nifty Future
now and I will take fresh trades on August month Future from today onwards. So
far, July month future may have support at 8500-8480 levels. For August month Future,
watch out for support at 8530. If works then fine else this market may head for
panic sell off.
S&P 500 (USA) – It hit 2079 in just one trade
session after it broke 2100 levels. These are just confirming the resistance of
2135 levels but we got many such moves in past nine months. On long term chart
it is in a range and making a top formation. Based on trend line study we can
expect resistance at 2095-2100 levels. Trade below 2075 can have potential to
hit 2045 in downside.
