MARKETS FOR WEDNESDAY 17 JULY

NIFTY  AS PER EXPECTATION TOOK A WELL DESERVED PAUSE AND ANOTHER DAY OF PAUSE IN THE FORM OF A DECLINE TO RETEST TUESDAY’S LOWS CAN NOT BE RULED OUT. THE INTERESTING FEATURE OF THIS WEEK’S TRADING IS  THAT NIFTY FUTURE WHICH WAS AT DISCOUNT TO NIFTY SPOT HAS GOT A PREMIUM TO NIFTY SPOT DURING THE COURSE OF THE BIG FALL OF TUESDAY.

FOR WEDNESDAY’S TRADING OF NIFTY FUTURES THAT HAS CLOSED AROUND 5979 ON TUESDAY THAT TOO AROUND THE HIGHEST POINT OF THE DAY, ONE CAN TRADE SHORT IN CASE NIFTY FUTURE  MOVES UP INITIALLY  BUT ONLY IF FAILS TO BREACH AND MORE IMPORTANTLY SUSTAIN ABOVE 6006 TO 6012 LEVELS. 30 MINUTE PARSAR RUNS AROUND 6016 TO 6020 & IF NIFTY FUTURE MANAGES TO BREACH IT THEN THERE MAY BE MASSIVE SHORT COVERING TO CLOSE THE ENTIRE OPENING GAP OF TUESDAY TILL 6030 FUTURE LEVELS THAT MAY CONFIRM THAT THE PAUSE IS OVER TO RESUME THE UP MOVE.

HOWEVER IF NIFTY FUTURE FALTERS AFTER THE INITIAL JERKY MOVEMENTS OR  DURING THE PROCESS OF LIKELY SLIDING,  BREACHES & SUSTAINS BELOW 5949 TO 5944 ZONE THEN THERE IS EVERY POSSIBILITY OF IT SLIDING FURTHER TOWARDS TUESDAY’S LOW OF 5918 FUTURE LEVELS WITH A DECEPTIVE HALT AROUND 5934 TO 5928 FUTURE ZONE SUSTAINING BELOW WHICH MAY EVEN SEE 5909 TO 5906 FUTURE LEVELS BELOW TUESDAY’S  TRADING LOW OF 5918. A SLIDE BELOW 5900 CAN SEE THURSDAY 11TH JULY LOWS OF 5893 THAT MAY THREATEN THE CRITICAL CONFLUENCE POINT 20, 34 & 50 DAY EMAS AROUND 5868 FOLLOWED BY DAILY PIVOT AROUND 5858 FUTURE LEVELS DURING THE WEEK.

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