NIFTY SPOT HAD THE EXPECTED MONSTROUS RISE ON FRIDAY AND AFTER OPENING GAP UP ABOVE THE INITIAL RESISTANCE LINE, IT WENT TO MAKE A HIGH OF 5853 AND CLOSED AT 5842 AROUND THE DAILY PIVOT. THE SHORT SQUEEZE ACTION OF FRIDAY SAW NIFTY CATAPULTED ABOVE THE 20 & THE 200 DAY EMA IN ONE GO AND TOUCHED THE 50 DAY EMA AROUND 5850. AS CAN BE SEEN IN THE DAILY CHART OF SPOT NIFTY ABOVE, NIFTY IS NEAR THE NEXT RESISTANCE OF 5868 WHICH IS FORMED BY THE RESISTANCE LINE COMING FROM 20 MAY TOP OF 6229 & 30 MAY HIGH OF 6133. THIS RESISTANCE LINE IS JUST ABOVE THE 11 JUNE HIGH OF 5868 & 18TH JUNE HIGH OF 5863. A DECISIVE BREACH OF 5863 TO 5868 SPOT ZONE WILL WITNESS ANOTHER BOUT OF MASSIVE SHORT COVERING THAT MAY PROPEL SPOT NIFTY TOWARDS THE NEXT CRITICAL RESISTANCE OF 5975 WHICH IS THE 61.8% RETRACEMENT LEVEL COUNTED FROM 20 MAY SWING HIGH OF 6229 & 26TH JUNE SWING LOW OF 5566. ONE CAN OBSERVE FIERCE BATTLE BETWEEN THE BULLS & THE BEARS AROUND THESE TWO RESISTANCES OF 5868 & 5975 & LIKE IT ALWAYS HAPPENS, THE BULLS CERTAINLY WILL EMERGE AS THE WINNERS DURING THIS MARKET FRIENDLY MONTH OF JULY.
TECHNICALLY, IF ONE OBSERVES THE DAILY INDICATORS THEN ONE WILL FIND THAT A LOT OF FURTHER UP MOVE IS IN STORE FOR NIFTY. EXPIRY DAY DECISIVE BREACH AND CLOSE AT 5682 ABOVE THE 26TH JUNE PERFECT DOJI & IN SIDE BAR SETUP’S MOTHER CANDLE HIGH OF 5666 WAS THE INITIAL TRIGGER FOR THE SHARP UP MOVE OF FRIDAY AFTER A BIG GAP UP ABOVE THE INITIAL RESISTANCE LINE. WITH THE SLOW STOCHASTIC GENERATING DEFINITE INDICATIONS OF FURTHER UP MOVE ALONG WITH THE +VE DIVERGENCE IN DAILY MACD HISTOGRAM . THE FORMATION OF A HOOK BY 20 DAY EMA ON TOUCHING THE 200 DAY EMA ADDS STRENGTH TO THE DAILY CHARTS FOR FURTHER UP MOVE. ALTHOUGH THERE MAY BE SMALL CORRECTIONS TO WEED OUT WEAKER HANDS BUT THESE CORRECTIONS ARE THE
IDEAL OPPORTUNITIES FOR BUYING AND HOLDING. SPOT NIFTY ON 24TH JUNE HAS MADE A HIGHER BOTTOM AT 5566 ABOVE THE 10TH APRIL SWING LOW OF 5477 & AS LONG AS THESE TWIN BOTTOMS ARE NOT DECISIVELY BREACHED ONE CAN EXPECT MUCH HIGHER LEVELS TOWARDS 5975, 6133 & THE CRITICAL 6229.
WELL, THE BULLS MUST TAKE FULL ADVANTAGE OF THE BULLISH TECHNICAL INDICATIONS DURING THE EARLY DAYS OF MARKET FRIENDLY JULY MONTH TO DECISIVELY BREACH 5868 SPOT AND CLOSE ABOVE IT TO AIM FOR THE HIGHER LEVELS OF 5975, 6133 & 6229. A FAILURE TO BREACH & MORE IMPORTANTLY CLOSE ABOVE 5868 SPOT MAY FORCE THE BULLS TO SURRENDER TO THE HUNGRY BEARS THAT MAY SEE NIFTY AGAIN FALLING TOWARDS FRIDAYS GAP LOW OF 5749 FOLLOWED BY EXPIRY DAY HIGH OF 5699 THAT WILL GENERATE THE IDEAL PANIC SITUATION FOR THE WEAKER HAND TO QUIT THE LONGS IN DISGUST ONLY TO FIND LATER THAT NIFTY HAS FOOLED THEM AGAIN BY DECEPTIVELY MOVING UP AGAIN TO EYE FOR NEW HIGHS OF THE YEAR IN JULY ITSELF. NIFTY FUTURES TRADING AT A DISCOUNT TO THE SPOT NIFTY IS A DECEPTIVE SIGNAL WHICH MUST BE TAKEN FULL ADVANTAGE OF.
FOR INTRADAY TRADING OF NIFTY FUTURES ON MONDAY, THE MOMENTUM OF FRIDAY MAY CONTINUE TO SEE ANOTHER GAP UP . WITH THE INITIAL RESISTANCE AROUND 5868 SPOT, IN CASE NIFTY FUTURE IS UNABLE TO CLEAR THIS LEVEL ONE MAY SHORT BY HAVING A STOP LOSS ABOVE IT TO REVERSE FOR LONGS. A FAILURE TO BREACH 5868 AND THEN FALLING BELOW THE FUTURE LEVEL OF 5800 WILL WEAKEN NIFTY FUTURES TO SLIDE TOWARDS 5777 FOLLOWED BY EVEN 5755 FUTURE LEVELS. SIMILARLY ON THE HIGHER SIDE THE CRITICAL FUTURE ZONE BETWEEN 5662 TO 5668 NEEDS TO BE BREACHED THAT WILL SEE SOLID SHORT COVERING TO PROPEL NIFTY FUTURES TOWARDS 5885 FOLLOWED BY 5910 OR EVEN HIGHER FUTURE LEVELS.
TECHNICALLY, IF ONE OBSERVES THE DAILY INDICATORS THEN ONE WILL FIND THAT A LOT OF FURTHER UP MOVE IS IN STORE FOR NIFTY. EXPIRY DAY DECISIVE BREACH AND CLOSE AT 5682 ABOVE THE 26TH JUNE PERFECT DOJI & IN SIDE BAR SETUP’S MOTHER CANDLE HIGH OF 5666 WAS THE INITIAL TRIGGER FOR THE SHARP UP MOVE OF FRIDAY AFTER A BIG GAP UP ABOVE THE INITIAL RESISTANCE LINE. WITH THE SLOW STOCHASTIC GENERATING DEFINITE INDICATIONS OF FURTHER UP MOVE ALONG WITH THE +VE DIVERGENCE IN DAILY MACD HISTOGRAM . THE FORMATION OF A HOOK BY 20 DAY EMA ON TOUCHING THE 200 DAY EMA ADDS STRENGTH TO THE DAILY CHARTS FOR FURTHER UP MOVE. ALTHOUGH THERE MAY BE SMALL CORRECTIONS TO WEED OUT WEAKER HANDS BUT THESE CORRECTIONS ARE THE
IDEAL OPPORTUNITIES FOR BUYING AND HOLDING. SPOT NIFTY ON 24TH JUNE HAS MADE A HIGHER BOTTOM AT 5566 ABOVE THE 10TH APRIL SWING LOW OF 5477 & AS LONG AS THESE TWIN BOTTOMS ARE NOT DECISIVELY BREACHED ONE CAN EXPECT MUCH HIGHER LEVELS TOWARDS 5975, 6133 & THE CRITICAL 6229.
WELL, THE BULLS MUST TAKE FULL ADVANTAGE OF THE BULLISH TECHNICAL INDICATIONS DURING THE EARLY DAYS OF MARKET FRIENDLY JULY MONTH TO DECISIVELY BREACH 5868 SPOT AND CLOSE ABOVE IT TO AIM FOR THE HIGHER LEVELS OF 5975, 6133 & 6229. A FAILURE TO BREACH & MORE IMPORTANTLY CLOSE ABOVE 5868 SPOT MAY FORCE THE BULLS TO SURRENDER TO THE HUNGRY BEARS THAT MAY SEE NIFTY AGAIN FALLING TOWARDS FRIDAYS GAP LOW OF 5749 FOLLOWED BY EXPIRY DAY HIGH OF 5699 THAT WILL GENERATE THE IDEAL PANIC SITUATION FOR THE WEAKER HAND TO QUIT THE LONGS IN DISGUST ONLY TO FIND LATER THAT NIFTY HAS FOOLED THEM AGAIN BY DECEPTIVELY MOVING UP AGAIN TO EYE FOR NEW HIGHS OF THE YEAR IN JULY ITSELF. NIFTY FUTURES TRADING AT A DISCOUNT TO THE SPOT NIFTY IS A DECEPTIVE SIGNAL WHICH MUST BE TAKEN FULL ADVANTAGE OF.
FOR INTRADAY TRADING OF NIFTY FUTURES ON MONDAY, THE MOMENTUM OF FRIDAY MAY CONTINUE TO SEE ANOTHER GAP UP . WITH THE INITIAL RESISTANCE AROUND 5868 SPOT, IN CASE NIFTY FUTURE IS UNABLE TO CLEAR THIS LEVEL ONE MAY SHORT BY HAVING A STOP LOSS ABOVE IT TO REVERSE FOR LONGS. A FAILURE TO BREACH 5868 AND THEN FALLING BELOW THE FUTURE LEVEL OF 5800 WILL WEAKEN NIFTY FUTURES TO SLIDE TOWARDS 5777 FOLLOWED BY EVEN 5755 FUTURE LEVELS. SIMILARLY ON THE HIGHER SIDE THE CRITICAL FUTURE ZONE BETWEEN 5662 TO 5668 NEEDS TO BE BREACHED THAT WILL SEE SOLID SHORT COVERING TO PROPEL NIFTY FUTURES TOWARDS 5885 FOLLOWED BY 5910 OR EVEN HIGHER FUTURE LEVELS.
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