Thursday, 5 July 2018

05 July 2018: Nifty Elliott wave analysis: Once again pattern may go to retest the power break out of Reverse H&S pattern. Stiff resistance @ 10860, caution required.



You must read previous articles and watch the given chart carefully to understand this article completely.
Analysis for 05 July 2018: -
On 04 July 2018: FII Net Sold – 284.58 INR Crs:  DII Net Bought – INR – 611.01 Crs

After few days of flip flop trade market is ready to challenge reverse H&S pattern again. Technical resistance will be at 10860 but that is also too far as of now. Charting trend line and momentum indicators are suggesting for one more attempt to execute reverse H&S.
Technical support will be at 10720-10700 levels. As long as Nifty is staying above 10700 we can expect strength. Market is heading for decisive mode. If it breaks higher then it will go higher else it may again truncate at higher levels. Good monsoon goes in favour of bulls. So far, monsoon progress is favouring market movement.
For today’s trading session, market is expected to open on positive note. Market may show initial strength but this strength may not see great revival at higher levels. Support if it fails at top then possible levels may be at 10820 or at 10860 levels. Caution required at higher levels.
Avoid this rise for any investment as market may be in a possible situation of big time divergence.

Strategy for Nifty July future – Nifty July SGX future is trading at 10770 which are showing for possible initial strength. It is expected to test 10820. The next possible move will be decided on the reaction at this level. Technical support will be at 10740 levels. If it breaks 10740 levels anytime then it will be early sign of weakness.

BANK NIFTY July future – It has proven that 26000 to 26200 are decisive support and it is maintained by market. It was a hope for Nifty and still it is maintaining strength. Technical support for the day will be at 26200 for the day with expectation for the move towards 26600 to 26700 levels. Can it hit 27000 sooner? If it has to then it will give some indication today.

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