July 8, 2014

Market outlook + intraday charts

Market close 2% in the red... biggest loss on closing basis and first time this year.

Now high swing low is at 7450 and this level is expected to provide support.

Option writers also think the same so inspite of markets tanking 2%, they have taken this opportunitiy to write more puts. By similar logic, they do not expect markets to cross 8000 this series.

Intraday charts:

On 5 min charts, break of 7750 spot was first indication of weakness. SL here would have been 7780 spot.

On hourly charts, we had a break of recent swing low at 7650... this event now terminates the bullish move and has effectively stopped out long positions.

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