MARKETS FOR 16TH AUGUST

NIFTY CONTINUED WITH ITS UPWARD MARCH AND HAS DECISIVELY BREACHED ITS EARLIER SWING HIGH OF 5349 TO FINALLY CLOSE AT 5380 MUCH ABOVE THE CRITICAL LEVEL OF 5349  SPOT. NOW IT NEEDS TO DECISIVELY BREACH AND CLOSE ABOVE THE NEXT HIGH OF 5386 THAT WILL CLEAR ITS PATH TOWARDS THE NEXT TARGET OF 5499 WHICH WAS THE HIGH OF 14TH MARCH 2012 .  AS CAN BE SEEN IN THE CHART THE CRITICAL LEVEL OF 5386  WHICH WAS THE HIGH OF  22ND MARCH  IS THE MOTHER
CANDLE OF 2 OUT SIDE BARS AND 1 INSIDE BAR THAT HAS FORMED A 2 IN 1 OSB & 1 IN ONE ISB SET UP. A BREACH AND MORE IMPORTANTLY A CLOSE ABOVE THE HIGH OF THE MOTHER CANDLE AT 5386 WILL SEE ACCELERATED UP MOVE FOR SPOT NIFTY TOWARDS 5499 FOLLOWED BY 5630 IN QUICK TIME WITH OPERATOR DRIVEN RETRACEMENTS IN BETWEEN TO WEED OUT WEAKER HANDS.

THE DAILY MACD AS WAS MENTIONED EARLIER HAS FORMED A MACD HOOK AS CAN BE SEEN IN THE CHART THAT WILL ACCELERATE THE UP MOVE AFTER MINOR RETRACEMENTS TOWARDS THE NECK LINE OF THE INVERTED HEAD & SOLDER FORMATION AS CAN BE SEEN IN THE DAILY CHART . A DECISIVE BREACH OF THE NECK LINE AROUND 5340 SHOULD TECHNICALLY LIFT NIFTY SPOT TOWARDS 5940 FROM THE BREAK OUT POINT OF 5340 ON THE NECK LINE WHICH IS EQUIVALENT TO 600 POINTS FROM THE INVERTED HEAD AT 4770 AND THE POINT ON THE NECK LINE AT 5370 VERTICALLY ABOVE THE INVERTED HEAD AS CAN BE SEEN IN THE CHART . BUT BE ABSOLUTELY SURE  MANY ATTEMPTS WILL BE MADE BY OPERATORS TO PULL NIFTY DOWN TOWARDS THE BREAK OUT POINT OF 5340 TO EVEN BREACH IT TO INDUCE A FEELING THAT UP MOVE IS OVER SO THAT THEY CAN ENTER TO RIDE THE BULL RUN.  HOWEVER, AS LONG AS THE LEVEL  OF 5294 IS STRONGLY HELD FOR SPOT NIFTY, IT WILL MOVE UPWARDS ONLY.

SPOT NIFTY ALSO HAS DECISIVELY BREACHED THE FIBO 61.8% LEVEL  OF 5301 COUNTED FROM 5630 TO 4770 FOR THE SECOND TIME TO CLOSE ABOVE IT & THIS SORT OF 2ND TIME BREACH OF CRITICAL FIBO 61.8% LEVEL GENERALLY CONFIRMS THE UP MOVE. TRADERS & INVESTORS MUST BE ABSOLUTELY SURE THAT THE UP MOVE AS PART OF THE 3RD WAVE OF THE ELLIOTT WAVE IS VERY MUCH THERE TOWARDS NEW LIFE TIME HIGHS BUT ONE ALSO SHOULD BE MORE CERTAIN TO SEE DRASTIC  PULL DOWNS TO THE MARKETS INFECTED BY OPERATORS AND MANIPULATORS TO SELECT THEIR OWN SUITABLE ENTRY POINTS AFTER FLUSHING OUT WEAKER HANDS. A DECISIVE BREACH & CLOSE ABOVE ‘B’ WAVE HIGH OF 5499 SPOT WILL CONFIRM THE CERTAINTY OF  NEW LIFE TIME HIGHS ABOVE 6357.

FOR INTRADAY TRADING OF NIFTY FUTURES ON THURSDAY,  ALTHOUGH MARKETS LOOK EXTREMELY BULLISH TECHNICALLY, ONE SHOULD NOT BE SURPRISED TO SEE NIFTY BEING PULLED DOWN INITIALLY OR AFTER THE OPENING OF EUROPEAN MARKETS TO GENERATE PANIC SO THAT WEAKER HANDS AND RETAIL ARE DRIVEN OUT.  NIFTY FUTURES FIND INITIAL INTRADAY SUPPORT AROUND 5393 BELOW WHICH ONE MAY SEE A SHARP DECLINE. INTRADAY TRADERS MAY PLAN TO BUY IN CASE NIFTY FUTURES ARE BROUGHT DOWN TOWARDS 5385 TO 5375 ZONE WITH A STOP LOSS BELOW IT TO REVERSE FOR INTRADAY SHORTS. SIMILARLY ON THE HIGHER SIDE IN CASE NIFTY FUTURE FAILS TO BREACH THE CRITICAL ZONE OF 5425 TO 5435 THEN ALSO ONE MAY TRADE SHORT WITH STOP LOSS ABOVE THIS ZONE TO REVERSE AND TRADE LONG. TECHNICALLY NIFTY IS HIGHLY BULLISH, SO IN GENERAL BUY THE INTRADAY DECLINES WILL GIVE GOOD GAINS.