MARKETS FOR 12TH OCTOBER

THE BIG RISE IN NIFTY EVEN AFTER DOW’S OVERNIGHT FALL OF MORE THAN 100 POINTS GENERATED THE ELEMENT OF SURPRISE AFTER NIFTY MADE AN INTRADAY LOW OF 5636 SPOT BELOW WEDNESDAYS LOWS OF 5646  SPOT. AS REGARDS NIFTY FUTURES, AFTER MAKING A DAY LOW OF 5656 THE FUTURES MOVED UP LIKE TRACER BULLET TOWARDS THE GIVEN STOP LOSS LEVEL OF 5710 ABOVE WHICH EVERY ONE REVERSED AND TURNED A BUYER AS WAS INDICATED YESTERDAY. THE RISE OF NIFTY FUTURES TO A DAY HIGH OF 5749, THE TWIN HIGH OF 9TH OCTOBER PUTS THE BULLS IN THE DRIVER’S SEAT TO MOVE UP FURTHER AFTER A MINOR PAUSE ON FRIDAY. HOWEVER IN CASE NIFTY FUTURES ON FRIDAY MOVES UP TO BREACH AND SUSTAIN
ABOVE 5749, THEN   LIKE EARLIER CASES OF LAST WEEK, ONE WILL NO MORE SEE ANY BEAR IN THE MARKETS AND NIFTY FUTURES WILL BE UNSTOPPABLE TO NOT ONLY BREACH LAST FRIDAYS DECEPTIVE HIGHS OF 5844 FUTURE LEVELS  BUT ALSO WILL EYE FOR THE NEXT CRITICAL RESISTANCE OF 5944 SPOT NIFTY LEVELS  BY THE COMING EXPIRY.

LAST WEEK SPOT NIFTY HAD CLOSED AT 5747 AFTER MAKING A WEEKLY HIGH OF 5815 SPOT. AFTER A PAUSE OF FOUR DAYS  BETWEEN LAST FRIDAYS HIGH OF 5844 FUTURE LEVELS AND THIS THURSDAY’S LOWS OF 5656, NEARLY 200 POINTS FALL, NIFTY FUTURE HAS MOVED UP TOWARDS 5749 BY END OF FRIDAY  AND HAD THE FIBO 61.8% LEVEL WAS NOT AROUND THURSDAY’S HIGH OF 5749, NIFTY FUTURES COULD HAVE MOVED UP & CROSSED THE 5800 LEVELS.NOW, THE RESULTS OF INFOSYS WILL PLAY A MAJOR ROLE IN MARRING THE NEW UP MOVE THAT HAS RESUMED FROM THURSDAYS LOWS OF 5656 FUTURE LEVELS OR IT MAY LIFT NIFTY TO CONFIRM THE RESUMPTION OF THE MEGA UP MOVE. SINCE INFOSYS HAS DISAPPOINTED FOR LAST 4 QUARTERS, THERE IS EVERY POSSIBILITY THAT IT WILL DECLARE A VERY GOOD RESULTS THIS QUARTER ON FRIDAY TO LIFT THE MARKETS UP FAILING WHICH INFOSYS SHARES MAY BE DUMPED LIKE TOILET PAPER TO SEE NIFTY FALLING AGAIN TO BREACH THURSDAYS LOWS OF 5656 FUTURE LEVELS  AGAINST THE ASTROLOGICAL INDICATION OF RESUMPTION OF THE MEGA BULL RUN.

IF ONE HAS A CLOSER LOOK AT THE TWO HOURLY CHART OF NIFTY FUTURE ABOVE, ONE WILL NOTICE THAT BOTH THE SLOW STOCHASTIC AND THE MACD ARE INDICATING FURTHER UP MOVE. THE MEGA BULLISH GREEN CANDLE TOWARDS THE LATER HALF OF THURSDAY HAVING BREACHED THE FLAG FORMATION WITH HEAVY VOLUME ENCOURAGES INTRADAY TRADERS TO BOLDLY BUY THE DECLINES IF AT ALL INFOSYS CONTINUES TO DELIVER THE 5TH CONSECUTIVE POOR RESULTS AGAINST THE ASTROLOGICAL INDICATION OF A MUCH BETTER RESULT. FOR INTRADAY TRADING PURPOSE ON FRIDAY, NIFTY FUTURES FIND INITIAL SUPPORT AT THE TOP OF THE FLAG AROUND 5727 TO BOUNCE UP FROM THERE. FAILURE TO BOUNCE FROM AROUND 5727 FUTURE LEVELS MAY SEE NIFTY FUTURES FALLING TOWARDS 5712 FOLLOWED BY 5692 TO BOUNCE FROM HERE .

SIMILARLY ON THE HIGHER SIDE, INFOSYS RESULT INDUCED UP MOVE IN CASE HELPS BULLS IN SUSTAINING ABOVE THE FUTURE LEVELS OF 5749 THEN ONE WILL OBSERVE MASSIVE SHORT COVERING BY THE BEARS WHO ARE HEAVILY SHORT NOT ONLY IN NIFTY FUTURES BUT ALSO ON THE INFOSYS COUNTER. THIS SHORT COVERING MAY PROPEL NIFTY FUTURES INITIALLY TOWARDS 5789 AS CAN BE SEEN IN THE CHART ABOVE FOLLOWED BY ANOTHER BOUT OF SHORT COVERING TO BREACH THE PSYCHOLOGICAL 5800 MARK TO MOVE UP FURTHER TOWARDS 5825 FUTURE LEVELS TO THREATEN THE CRITICAL LAST FRIDAYS HIGHS OF 5844 TOWARDS 5858 FUTURE LEVELS. SO, RESULTS OF INFOSYS HOLDS THE KEY FOR THE PSYCHOLOGY OF INDIAN MARKETS EVEN THOUGH THE RESULTS OF INDEX HEAVY HDFC BANK ALSO MAY BOOST INDIAN MARKETS. IN CASE THE QUARTERLY RESULTS OF BOTH ARE BAD, THEN GOD EVEN MAY NOT SAVE INDIAN MARKETS AS ALL WILL BOW DOWN TO THE OPERATORS TO SEE 5600 LEVELS IN QUICK TIME.

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