MARKETS FOR 10TH SEPTEMBER

NIFTY BEHAVED EXACTLY AS WAS WRITTEN  DURING LAST FEW DAYS AND TESTED THE 50% RETRACEMENT LEVEL OF 5240, THE LOWER BOLLINGER BAND AROUND THE BASE OF THE UPWARD LOOKING CHANNEL AT 5215 TO SHOW A REMARKABLE BOUNCE FROM THE LOW OF 5215 TO BOUNCE AND CLOSE AROUND THE SPOT NIFTY LEVEL OF 5359 ON SATURDAY. THE BIG GAP UP ON FRIDAY INDUCED BY THE FAVORABLE OUTCOME OF ECB THAT PUMPED  DOW SOARING TOWARDS NEW HIGHS, SAW INDIAN
AS WELL AS MOST OF THE ASIAN MARKETS RECOVER A GREAT PORTION OF THEIR LOSSES WHICH HAD COME DURING LAST TWO WEEKS. ALTHOUGH THE NEWS EVENTS HAVE THE POWER IN ITSELF  TO PROPEL THE MARKETS TO MUCH HIGHER LEVELS, YET ONE SHOULD NOT LOSE SIGHT OF THE OPERATORS’ ACTION TO TRAP THE BULLS BY CONTRA ACTION THAT MAY SUDDENLY SEE DOW FALLING ON AN  ADVERSELY  PLANTED NEWS EARLY NEXT WEEK  WHICH MAY HAVE  A CHAIN REACTION ACROSS REST OF THE GLOBAL MARKETS  TO FULFILL THE IMMEDIATE NEEDS  OF THE OPERATORS & MARKET MANIPULATORS.

To view Chart click here.. http://liveglobalmarket.blogspot.in/2012/09/nifty-spot-6-months-chart-from-20-feb.html

PURELY BASED ON THE TECHNICALS, THE WAY NIFTY MADE A STRONG BASE AROUND THE LOWS OF 5TH & 6TH SEPT AT THE 5215 TO 5218  LEVELS, EXACTLY AT THE LOWER CHANNEL  AS WELL AS AT THE LOWER BOLLINGER BAND  AS GIVEN IN THE DAILY CHART ABOVE, AFTER BREACHING THE CRITICAL 50% RETRACEMENT LEVEL OF 5240 TO WEED OUT THE WEAKER HANDS, IS A CLEAR INDICATION THAT THE CORRECTION FROM THE 23RD AUGUST HIGH OF 5449 TILL THE LOW OF 5215 IS OVER & NIFTY HAS RESUMED THE UPWARD JOURNEY AS THE NEXT LEG OF THE MONSTER 3RD UP WAVE . THE PRESENT UP MOVE UNDER NORMAL CIRCUMSTANCES SHOULD SEE SPOT NIFTY EASILY BREACHING  THE AUGUST MONTH HIGH OF 5449 TOWARDS THE NEXT SWING HIGH OF 5499 THAT WAS REACHED ON 14TH MARCH 2012. BUT REMEMBER EVERY RISE WILL BE FOLLOWED BY THE AS USUAL OPERATORS’  DRIVEN DOWN SIDE REACTION AND EVERY DOWN SIDE REACTION WILL BE SUCH THAT EVERY TIME ONE WILL BE MADE TO THINK  AS IF THE  BEAR MARKET HAS STARTED, BUT ONLY TO BE FOOLED TIME AND AGAIN.

THE FALL FROM THE 23RD AUG HIGH OF 5449 TILL 6TH SEPT LOW OF 5215  TOOK 10 TRADING DAYS. INTERESTINGLY IN JUST ONE TRADING DAY OF FRIDAY NIFTY SPOT HAS RECOVERED TILL 5347 WHICH IS MORE THAN 50% RETRACEMENT LEVEL 5332. ON THE TRUNCATED TRADING DAY OF SATURDAY NIFTY SPOT REACHED TILL 5366 WHICH IS EVEN HIGHER THAN THE FIBO 61.8% LEVEL OF 5360. THE SHARP MOVE TO RECOVER 62% OF THE SLIDE OF 10 DAYS IN JUST 2 TRADING DAYS, IS THE  SAVAGE POWER OF THE NEXT LEG OF THE 3RD UP WAVE THAT HAS ALL THE POTENTIAL TO MAKE NEW LIFE TIME HIGHS BEFORE THE END OF THIS FINANCIAL YEAR IF NOT AS EARLY AS THE DIWALI OF 2012 OR BY THE 31ST DECEMBER 2012.

THE INDICATORS IN THE DAILY CHARTS LOOK EXTREMELY BULLISH AS CAN BE SEEN IN THE CHART ABOVE. THE SLOW STOCH HAS JUST JUTTED OUT OF THE OVERSOLD ZONE THAT CAN SEE NEXT COUPLE OF DAYS OF SHARP UP MOVE TILL IT REACHES THE OVERBOUGHT ZONE.  MORE IMPORTANT DAILY TREND INDICATOR THE DAILY MACD HAS AGAIN FORMED A MACD HOOK SIMILAR TO THE ONE IT HAD MADE   WHEN NIFTY  MADE THE JULY MONTH EXPIRY DAY LOW OF 5031.  INTERESTINGLY SLOW STOCH ALSO HAD MADE A SIMILAR LOW  AROUND THE JULY MONTH EXPIRY  LOW OF 5031, SIMILAR TO THE ONE  IT HAS MADE RECENTLY ON THE 5TH SEPTEMBER LOW OF 5215 AS CAN CLEARLY BE SEEN IN THE DAILY CHART ABOVE. NIFTY HAVING FALLEN BELOW BOTH THE 20 AND 50 DAY EMA TO BOUNCE UP BEFORE REACHING THE 200 DAY EMA TO AGAIN BREACH BOTH 20 AND 50 DAY EMA TO CLOSE ABOVE BOTH THESE IS ANOTHER STRONG BULLISH SIGNAL TECHNICALLY. NOW UPWARD LOOKING 20 DMA AROUND THE 7TH SEPTEMBER GAP LOW OF 5309 SPOT BECOMES A STRONG SUPPORT FOR SPOT NIFTY BELOW WHICH AGGRESSIVE SWING TRADERS MAY EVEN PLAN TO HAVE THEIR STOP LOSSES INSTEAD OF HAVING IT BELOW THE SWING LOW OF  5215 THE IDEAL ONE FOR THE DEFENSIVE TRADERS.

SO, KEEPING ALL THESE TECHNICAL FACTORS IN MIND ONE SHOULD BE REASONABLY SURE TO SEE NIFTY SPOT GETTING INTO MUCH HIGHER ORBIT NOT ONLY THROUGH MASSIVE ACTION OF SHORT COVERING BUT ALSO THROUGH HEAVY INVESTMENT BUYING ON EVERY DECLINE  AS LONG AS SPOT NIFTY SUSTAINS ABOVE THE RECENT SWING LOW OF 5215. WELL, ONE ALSO SHOULD NOT OVERLOOK THE LIKELY OPERATORS ACTION OF PULLING DOWN THE MARKETS THROUGH PLANTED NEWS ON EUROPE, OR DOWNGRADING ACTION BY FRAUDULENT RATING AGENCIES OR EVEN  PLANTING OF OLD  & DISCOURAGING NEWS TIME AND AGAIN  BY OUR OWN FINANCIAL CHANNELS TO WEED  OUT WEAKER HANDS FOR THEIR OWN SUITABLE ENTRY PURPOSE. ALTHOUGH THESE NASTY ACTIONS WILL NOT ALTER THE OVER ALL BULLISH STRUCTURE OF THE MARKETS, YET IT WILL LOWER THE CONFIDENCE OF INVESTORS WHO NOW HAVE GOT A GREAT CHANCE OF ENTERING THE MARKETS FOR VERY GOOD GAINS.  BE SURE THE MARKETS ARE HIGHLY BULLISH NOW AND BUY THE DECLINES & HOLD THE POSITIONS BY TRAILING THE STOP LOSSES BELOW THE LOW OF THE PREVIOUS BIG CANDLE SHOULD BE THE MOTTO FOR NEXT FEW DAYS.

FOR INTRADAY TRADING ON MONDAY 10TH  SEPTEMBER, THE MARKETS ARE POISED FOR ANOTHER GAP UP WHICH CAN ONLY BE NULLIFIED BY SOME MANIPULATIVE ACTION BY THE OPERATORS STARTING THE MORNING IN A BAD FASHION TO PULL DOWN THE AUSTRALIAN MARKETS EARLY IN THE MORNING TO START THE CHAIN REACTION OF A WEAK ASIAN MARKETS TO ALLOW HIGHLY MANIPULATIVE SGX NIFTY TO OPEN  REMAIN WEAK TO INDUCE A MILD OR WEAK OPENING FOR INDIAN MARKETS. IN ADDITION TO THIS DOW OPERATORS MAY KEEP DOW FUTURES SUBDUED TO RUIN ASIAN MARKETS WHICH TECHNICALLY LOOK HIGHLY BULLISH FOR MANY MORE DAYS. IN CASE THIS HAPPENS, NIFTY WHICH HAS RETRACED UP TILL THE FIBO 61.8% LEVEL OF 5360 SPOT COUNTED FROM THE AUGUST HIGH OF 5449 TILL 5TH SEPTEMBER LOW OF 5215, MAY PULL DOWN A BIT TOWARDS LOWER LEVELS TO FACILITATE SUITABLE ENTRY FOR BIG PLAYERS TO TRIGGER  ANOTHER BIG UP MOVE.

SPOT NIFTY WHICH HAS CLOSED ON SATURDAY AROUND 5358 LEVELS HAS STRONG SUPPORT AROUND THE UPWARD LOOKING  FRESH SUPPORT LINE ORIGINATING FROM THE FRIDAYS GAP LOW AROUND 5309 AND MOVING UP TOWARDS 5335 TO 5330 SPOT LEVELS. AS LONG AS SPOT NIFTY SUSTAINS ABOVE THIS INTRADAY SUPPORT LINE, ONE MAY CONTINUE TO HOLD LONGS AND ADD MORE LONGS WITH A STOP LOSS BELOW SPOT 5330. A BREACH OF 5330 SPOT MAY SEE NIFTY FALLING TOWARDS THE LOWER LEVELS OF 5315 TO THREATEN THE BREACH OF FRIDAY’S GAP LOW OF 5309. ON ANY DAY IN CASE SPOT NIFTY SLIDES BELOW THE GAP LOW AND THEN RISES TO CLOSE ABOVE THE GAP LOW, IT WILL AGAIN  TRIGGER THE SIGNAL FOR ANOTHER MASS EXODUS OF BEARS AND INVITE HEAVY BUYING AGAIN.

SIMILARLY ON THE HIGHER SIDE, MOST LIKELY NIFTY WILL MOVE UP TO BREACH THE SATURDAY’S HIGH OF 5366 TO INCH UP FURTHER TOWARDS 5375 TO 5385 SPOT ZONE, SUSTAINING ABOVE WHICH AT LEAST THE KISS OF THE PSYCHOLOGICAL LEVEL OF 5400 LOOKS TO BE A CERTAINTY, ALTHOUGH ANOTHER TOUGH BATTLE MAY BE FOUGHT BETWEEN THE BULLS AND THE BEARS AROUND THE WEEK ENDING 31ST AUGUST MONSTER RED CANDLE HIGH AT 5399 SPOT. SUSTAINING ABOVE THIS MONSTER WEEKLY RED CANDLE HIGH OF 5399 SPOT MAY CATAPULT SPOT NIFTY TOWARDS 5420 OR EVEN HIGHER LEVELS BY THE REPELLING FORCE OF SHORT COVERING TO BE AT THE STRIKING DISTANCE FROM 23RD AUGUST HIGH OF 5449 SPOT.

SHORT TERM TRADERS MAY BOLDLY ACCUMULATE BADLY BEATEN DOWN STOCKS IN THE SECTORS OF BANKS, AUTO, METALS  & INFRASTRUCTURE, AS THESE ARE LIKELY TO BE THE SHARPEST GAINERS JUST BEFORE THE RBI GOVERNORS ANNOUNCEMENT OF LOWERING OF RATES ON 18TH SEPT. BOLDLY BUY THESE BEATEN DOWN STOCKS ON EVERY DECLINE FOR GREAT GAINS  IN COMING DAYS. PLANETS TOO ARE INDICATING A GREAT MONTH OF SEPTEMBER FOR THE STOCK MARKETS.

Source:QueensTrade

1 comment:

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