MARKETS FOR 17TH AUGUST

THIS WEEK NIFTY SPOT ALSO BREACHED THE EARLIER 10TH JULY SWING HIGH OF 5349  TO REACH TILL 5277 SPOT LEVELS, BUT THE LAST 3 CONSECUTIVE DAYS OF MILDER FALLS SAW NIFTY CLOSING THE WEEK AT 5320 STILL LOWER THAN THE 10 JULY CLOSING HIGH OF 5345. SO, IRRESPECTIVE OF ANY AMOUNT OF INTRADAY TOWERS MADE BY NIFTY,  AS LONG AS IT FAILS TO CLOSE ABOVE THE PREVIOUS CLOSING SWING HIGH OF 5345 OR MORE IMPORTANTLY ABOVE 5349, EVERY INTRADAY RISE
WILL FIZZLE OUT TO SEE LOWER CLOSINGS. A DAILY CLOSE ABOVE LAST WEEKS HIGH OF 5377 SPOT WILL CONFIRM THE MEGA UP MOVE THAT HAS STARTED AFTER 26TH JULY EXPIRY DAY MANIPULATED LOW OF 5031.

TECHNICALLY THE MONTHLY CHARTS CONTINUE TO DISPLAY ROBUST BULLISH SIGNALS ON A LONG TERM BASIS. PRESENTLY SPOT NIFTY IS TRADING FAR ABOVE THE 50 MONTH MOVING AVERAGE AROUND 4700 AND ALSO ABOVE  THE 20 MONTH MOVING AVERAGE AROUND 5270. 34 MONTH MOVING AVERAGE AROUND 5350 SPOT LEVELS IS MAKING NIFTY DANCE AROUND IT  TO FINALLY GIVE IT UP & CLOSE ABOVE IT. THE MONTHLY MOMENTUM INDICATORS ARE ALSO LOOKING BULLISH FOR MUCH HIGHER LEVELS EVEN TOUGH THE EARLIER MONTHS OF AUGUST CARRY  SIMILAR  NOTORIOUS REPUTATION OF OTHER MARKET PINCHING MONTHS OF MAY & OCTOBER.

THE WEEKLY CHARTS LOOK BULLISH WITH THE TRIO OF THREE CRITICAL WEEKLY EXPONENTIAL MOVING AVERAGES OF 20, 34 & 50 LOOKING UPWARDS WITH THE 50 WEEK EMA AROUND 5130 BELOW 34 WEMA AROUND 5146 AND 20 WEMA AROUND 5171. BESIDES OTHER BULLISH LOOKING WEEKLY INDICATORS, THE WEEKLY +VE DMI BREACHING THE –VE DMI TO MOVE UPWARDS IS A STRONG BULLISH INDICATION  IN THE WEEKLY CHARTS  ENCOURAGING SWING TRADERS TO ADD ON TO THEIR LONG POSITIONS ON EVERY DECLINE. IN THE WEEKLY CHARTS, THIS FRIDAY ON 10TH AUGUST SPOT NIFTY HAS CLOSED AT 5320 ABOVE THE WEEKLY  RESISTANCE LINE COMING FROM THE WEEKLY SWING HIGHS OF 5630 FOR WEEK ENDING 24TH FEBRUARY & 5348 THE SWING HIGH OF WEEK ENDING 13TH JULY. THIS IS ANOTHER BULLISH SIGNAL FOR MANY MORE WEEKS TO COME. SO, ALL IN ALL BUY ON DECLINES SHOULD BE THE OVERALL TRADING STRATEGY.

THE DAILY CHARTS ALTHOUGH ARE NOT LOOKING AS ROBUST AS THE WEEKLY CHARTS AND THE MONTHLY CHARTS, YET THE THREE DAYS OF FALLS HAVE NOT YET GENERATED SELL SIGNALS IN THE DAILY CHARTS. THE MONSTER GAP UP OF LAST MONDAY WITH ITS GAP LOW AROUND 5262 SHOULD HOLD SPOT NIFTY ABOVE THE GAP. THE UPWARD LOOKING DAILY EMAS OF 8 AROUND FRIDAYS LOW OF 5294, 13 AROUND 5262, 21 AROUND 5242, 34 AROUND 5220, 55 AROUND 5191 & 89 AROUND 5168 THAT TOO ALL THESE ABOVE THE CRITICAL 200 DAY EMA AROUND 5132 ENCOURAGED BY THE SUCCESSFUL  GOLDEN CROSSOVER OF BOTH THE 50 DAY SMA & 200 DAY SMA  & ALSO 50 DAY EMA & THE 200 DAY EMA WILL ACT AS STRONG SUPPORTS FOR NIFTY  DURING THE ROUTINE RETRACEMENTS.