NIFTY FUTURE PREDICTION FOR TOMORROW 23-JULY-2014

"Buy Nifty 7700 Call @ 95 Tgt 125/135 Sl 62"

"Sell IDFC Future Below 161 Tgt 159.20/157.60 Sl 162.90"

The Sensex rallied over 300 points in trade on Tuesday to end above its crucial psychological resistance level of 26,000. The Sensex has rallied 3% in over six days to become world's top performing index. Tracking the momentum in nifty future, the Nifty index also managed to reclaim its crucial psychological level of 7750, supported by gains in realty, power, oil & gas and realty stocks. Today nifty future started at 7715 made a high of 7773 and low of 7706 and closed 7770, total 67 points was played by nifty future. 

NIFTY FUTURE PREDICTION FOR TUESDAY 22-JULY-2014

"Buy DLF 200 Put @ 1.95 Tgt 2.40/2.70 Sl 0.90"

Today market maintained uptrend throughout the day. The market remained in positive zone throughout the day. But, higher level could not be sustained due to weakness in European shares triggered by lingering geopolitical concerns. Indian stocks eked out small gains as monsoon rains picked up last week. With small gains Sensex and the Nifty, both settled at their highest level in two weeks. The market breadths indicating the overall health of the market was positive.. Today Nifty future started at 7701 made a high of 7719 and low of 7675 and closed at 7682, only 44 points was moved by nifty future. 

NIFTY FUTURE OUTLOOK FOR THE WEEK WAS & THE WEEK AHEAD

In this whole week bullish rally was witnessed there in the market. The market gained in four out of five trading sessions in the week just gone by. The rally has been fierce with foreign institutional investors infusing nearly $23 billion in the Indian markets so far in 2014, mainly betting on the reform agenda by the new government. 

• The market registered small losses after moving in a narrow range during the trading session on Monday, 14 July. The Sensex shed 17 points to settle at 25,006.
• The market snapped five-day losing streak on Tuesday, Sensex garnered 221 points to settle at 25,228 on Tuesday.
• On Wednesday 16 July a decent growth in India's merchandise exports in June 2014 triggered a rally on the domestic bourses . The Sensex garnered 321 points to settle at 25,549 on Wednesday.
• The market eked out small gains after moving in a narrow range in intraday trade on Thursday, 17 July. The Sensex garnered 11 points to settle at 25,561 on Thursday.
• The market edged higher in choppy session of trade on Friday, 18 July. The Sensex was up 80 points.

NIFTY OUTLOOK FOR FRIDAY 18-JULY-2014

Today Sensex pared most of its early morning gains and was trading flat in afternoon trade on Thursday, Tracking the momentum in the Nifty index, also came off from its intraday highs, but was still trading above its crucial psychological support level of 7600.Today nifty future started at 7642 made a high of 7674 and low of 7628 and closed at 7660, total 46 points was moved by nifty future. The nifty future after an initial phase of volatility in yesterday’s session did show a short term reversal signal in the end by moving up nearly 1%. However, being a counter-directional rally it faces a major test today in that it needs to cross the most difficult supply zone between 7620 and 7670 within which the range from 7640 through 7680 would act like an acid test zone for the bulls. We can only trust this rally to bring in more gains if these levels are crossed and the index stays above the critical zone aided by a lot of volume activity. If the Nifty future crosses 7680 successfully then the next target would be 7700 – 7800. We continue to hold our view to create longs at 7400-7450 levels in spot with a Stop loss of 7290 in spot (Closing Basis) for targets of 7900-8000 by mid-August.

NIFTY FUTURE TECHNICAL REPORT & CHART FOR JULY-AUGUST,2014

While analyzing the Daily Charts of “Nifty” We found that the Nifty looks oversold and based on few Technical observations, we believe it is apt for bounce back. We had said at 7620 levels, Nifty Spot could drift to 7400-7450 levels amidst budget volatility; however that volatility could be used to cherry pick stocks in the overall equity portfolio. Nifty Spot had

 made a low of 7422 on 14^th July 2014. We continue to hold our view to create longs at 7400-7450 levels in spot with a Stop loss of 7290 in spot (Closing Basis) for targets of 7900-8000 by mid-August

• The 50 Day “Simple moving average” is placed at 7400-7410 levels
• The Lower Band of the “’Bollinger Band” is placed at 7400-7410 levels
• The rising trend line connecting the lows of February 2014 and May 2014 is placed at 7320 levels; however the trend line support could rise to above 7400 levels by next week
•  The RSI is at crucial 40-45 levels and 40-45 levels is usually considered to be the lower band of the RSI in the Bull Market.
•  The RSI and Price Action is in Sync. Usually RSI and Nifty makes bottom within a week. We have seen in the past RSI and Price both bouncing back from the trend line together. The Technical Set-up is positive.

To Sum it up, the fall seen in the last week, throws open before us a golden opportunity to create fresh longs with above mentioned stop loss and Targets. While there may be a lot of Noise in the market about Nifty going to 6900-7100 levels because of Negative Feedback loop, Technical Analysis Suggests otherwise

NIFTY FUTURE OUTLOOK FOR TUESDAY 15-JULY-2014

See-saw movement was there in the market today. After a flat opening the market dropped down in the afternoon session. The sensex & nifty both hits lowest level almost in a month. The sensex is hovering around the level of 25000, while nifty is oscillating around the 7450-7475 level. Market was alternatively moving to the negative & positive zone. At the time of closing the sensex was marginally above at the level 25,006 led by losses in Infosys, HUL, HDFC, ICICI Bank and Wipro, while nifty closed at 7454. The Nifty future started at 7488 made a high of 7505 and low of 7445 and closed at 7482 total 60 points was played by nifty future. . Volatility is expected between 7376 and 7357 on the downside and 7470 and 7520 on the upside, over the next few days.

NIFTY FUTURE OUTLOOK FOR MONDAY 14 JULY, 2014

Today starting of market was positive but it slumped down after the announcement of the Infosys results. Sensex closed at 25,024; down 348 points & Nifty ended the trade at 7,459 down 108 points. The sensex  is provisionally closed above the psychological 25,000 mark after slipping below that mark for a brief period. The Sensex and Nifty, both, hit 2-1/2-week low. . Today nifty future started at 7565 made a high of 7638 and low of 7466 and closed at 7484 total 172 points was moved by nifty future. The Nifty has broken the rising wedge pattern and has also retraced 78.6 per cent of the same. Now, once it breaks 7,479 it will confirm its next five-wave decline which has an equality target of 7,400. The negative divergence in the momentum indicator clearly indicates that bears have the upper hand.

UPDATES : NIFTY TRADING STRATEGY FOR BUDGET 2014

We had Said in Report the possibility of Nifty going to 7450 levels in Spot and bouncing back. We had said in case Nifty sport levels goes to these levels we can create longs for 7950-8000 levels by MID August. We stand by our view. Nifty made a low of 7479 (Very close to 7450) and bounced back. The quality of bounce back is very convincing and 8000 levels by MID August is highly possible.