Trading Strategy for 14th July

Nifty has been crashing down after touching 4600 levels, and at that time all analysts were saying to buy nifty for a target of 4800, but just before the budget, few days to go, market was correcting and having high volatility, and on the day when the budget arrived, all saw what happen to the market.

Since then we are at a down trend, nifty has broken the major bull run level which was 4050, and made a low of 3918.75 which was today.

Now the bulls and the bears are at a fight with each other, markets are likely to follow global cues now, as per all the events are over. If we look at the the reliance charts, we would find that the gap which was created after the circuits we had, that gap has been filled in the case of the reliance stock.

The chart for Reliance Industries : -

If you see at the charts the stock gap has been filled, now if we see the fundamentals the stock is trading around 1750 levels, and if we have a look at the historical data which is the stock has been creating new lows from 1st July till date, today’s low was 1717.10.

Now if we are going to fill up the gap before the bounce back, the bulls would have to run and the bears would have to take over and markets might correct till 3800 - 3750 levels, where there is a crucial support for nifty and markets can be in control of the bulls as per the bears would get tired as the bulls got tired after a continuous rally for months.

Now the big question which arises is that, if nifty is likely to touch 3800 levels or 3750 levels, then were would Reliance go?????

Te answer to this question would be given by the market itself, if markets react and slide we may tank now, now if today’s low is broken then we are surely going to touch 3800 very soon.

Reliance support can be at 1650 levels from where it might bounce and if any bounce it may run up the market, so keep am eagle eye on the market.

The volumes in the market has been decreased, thus which shows that major trapping has been done by the market to its investors and all being trapped are in great pain and thinking what to do and what not to, thus they are keeping aside with there stocks in there bags and waiting for a rise to exit all longs.

Trading strategy for 14th July :

As of now at 10:40pm, Dow is trading at 8278 & SnP500 is trading at 894, now if the snp500 croses above 900 and sustains there we may see 4050 levels tommorow and if we close above that we can see some short covering in the market and we might touch 4100 levels also.

But for the up trend to continue we have to close above 4150 levels from where the bulls have complete control and we might touch 4400 levels also.

Stocks to watch out tomorrow are GMR INFRA, Power grid, Indowind, Axis Bank, Wipro, Unitech.

Buy nifty only above 4005 levels for a target of 4030 - 4050 - 4080 - 4110, SL 3985, sell nifty only below 3950 for a target of 3920 - 3880 - 3830 levels, we might have support at 3880 levels from where a bounce back can be expected.

We might see a 20 to 30 points gap up closing, we have to see how the euro markets open and can we close above 4050 levels, as per selling can be seen at high levels as per investors are trapped in the market.

Have a look at the charts for Nifty : -

Volatility is likely to increase in the market, realty sector was down, we might see a up side in the reality sector tomorrow, Unitech has a support at 65 from where it can bounce back to 70 - 73 levels, if 65 broken it might touch 60 - 55 levels very soon.

Stocks prices to vary from nifty positions now, so check out global ques and don’t forget to watch out on 900 levels for snp500 for DOW.

We would like to wish you all a happy investment and those who are trapped don’t feel bad, gravity will pull back a ball which is thrown up in the air but when it will touch the ground it will definitely bounce back and touch the sky, we feel that feeling positive in your trades and have patience and buy when all supports are broken and sell when all time high is seen.

The above mentioned information are our personal views, one may use the information at there own risk, we don’t hold any responsibility, trading is at your own risk.