August 4, 2014

Market outlook

Trend is up and will reverse on close below 7420. Note today's bounce has come from 61.8% retracement level. So going forward, Friday's low become important.

Option writers are bullish and do not expect 7300 to break this series.

EOD charts

Intraday charts

Trading 5 min charts was difficult because of the gapup opening and the immediate weakness. While the gap up is not a problem, the lack of follow through buying poses a problem.

Sustaining above initial day's high (7650 spot) with SL at day's low was the only possible trade.

On hourly charts, trend is still down and will reverse on close above 7720 spot.

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