MARKETS FOR WEDNESDAY 21ST AUGUST

NIFTY ON TUESDAY OPENED WITH A GAP DOWN AND IN THE 1ST 30 MINUTES IT MADE A LOW OF 5307. HOWEVER MARKET LIFTING NEWS, PROFIT BOOKING & END OF THE DEVASTATING FULL MOON CYCLE THAT HAD STARTED FROM 23RD JULY HIGH OF 6093 SAW THE MARKETS MAKING SUBSTANTIAL RECOVERY TO ENTER THE OPENING GAP ABOVE 5346 TO MAKE A DAY HIGH OF 5417 TO FINALLY CLOSE THE DAY AT 5401 STILL BELOW MONDAY’S CLOSING OF 5414 SPOT. ALTHOUGH SOME MORE RECOVERY MAY BE EXPECTED BUT ONE SHOULD ALSO EXPECT TUESDAYS LOWS OF 5307 WILL BE TRIED BY THE BEARS AGAIN THAT OFFERS GREAT OPPORTUNITY FOR INTRADAY TRADERS TO SHORT ON RISE TOWARDS THE CRITICAL LEVEL OF 5454 OR EVEN ABOVE IT. SPOT NIFTY LEVELS OF 5417 TO 5421 & THEN 5445 TO 5454 ARE CRITICAL RESISTANCES.


FOR INTRADAY TRADING OF NIFTY FUTURES ON WEDNESDAY, IT IS REASONABLE TO EXPECT TUESDAY’S LOWS OR ITS NEAR LEVELS TO BE RETESTED BY NIFTY TO ENCOURAGE INTRADAY BUYERS TO BUY THE DECLINES TOWARDS IT FOR A GOOD BOUNCE TO CONTEST THE BEARS WHO WILL TRY THEIR LEVEL BEST TO MOVE DOWN TOWARDS TUESDAYS LOWS OF 5306 FUTURE LEVELS. IN CASE THERE IS NO GAP UP OPENING THEN FUTURE ZONE OF 5414 TO 5420 IS THE FIRST RESISTANCE ZONE SUSTAINING ABOVE WHICH ONE MAY SEE WEAK BEARS COVERING THEIR SHORTS TO PROPEL FUTURES UPWARDS. IN CASE 5435 TO 5440 FUTURE LEVEL IS BREACHED THEN ONE SHOULD BE REASONABLY SURE TO SEE BULLS PUSHING A LITTLE HARDER TO SEE NIFTY FUTURE TESTING 5464 TO 5475 ZONE TO BRING BACK THE BEARS AGAIN TO CHASE THE BULLS AWAY.

HOWEVER WITH A BIGGER GAP UP OPENING, THINGS MAY LOOK BETTER FOR THE BULLS AS MOST OF THE WEAKER BEARS MAY START TO SHIVER TO COVER THEIR SHORTS EARLY. ON THE LOWER SIDE NIFTY FUTURE FINDS INITIAL SUPPORT AROUND 5353 BELOW WHICH BEARS WILL DOMINATE THE SCENE TO PULL NIFTY FUTURES DOWN TOWARDS 5335 FOLLOWED BY 5303 THAT MAY SEE BULLS CHARGING IN AGAIN TO SEND THE BEARS TO LOOK FOR COVER.

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