MARKETS FOR THURSDAY 3RD OCTOBER

THE WAY NIFTY AFTER OPENING GAP UP ON TUESDAY, WENT DOWN TO BREACH MONDAY’S LOW OF 5718 TO MAKE A LOWER LOW OF 5700 & THEN WENT UP TO CLOSE IN THE FORM OF A GREEN HAMMER ABOVE THE MID POINT OF MONDAY’S CANDLE AND ABOVE THE DAILY PIVOT IS PERHAPS AN EARLY INDICATION THAT THE DOWN SIDE MOMENTUM WILL STALL FOR SOME MORE SESSIONS BEFORE ITS RESUMPTION TOWARDS 5500 LEVELS AS PART OF THE ‘ABC ‘ ZIGZAG CORRECTION TO RETRACE 61.8% OF THE 1023 POINT, A DISTINCT & COMPLETED 5 WAVE RISE FROM 28TH AUGUST LOW OF 5119 TILL 19TH SEPTEMBER HIGH OF 6142 SPOT. ANOTHER PRICE EVENT THAT MAY GIVE SOME REST TO THE BEARS IS THAT ON TUESDAY NIFTY SPOT HAS CLOSED ABOVE THE CONFLUENCE POINT OF 34, 50 & 200 DAYS EMA WHICH TOO IS RIGHT AT THE DAILY PIVOT. SO THE BULLS MUST TAKE FULL ADVANTAGE OF THIS TECHNICAL SITUATION AND NEVER MISS THIS OPPORTUNITY OF LIFTING NIFTY SPOT AT LEAST TOWARDS THE SPRING ACTION ZONE OF 5919 TO 5939 FROM WHERE ON ONE WILL SEE THE REAL BATTLE BETWEEN THE BULLS & THE BEARS TO REGAIN SUPREMACY.

ON TUESDAY NIFTY SPOT MADE A HIGH OF 5787 AND HAS CLOSED AROUND 5780 NEAR THE HIGHEST POINT OF THE DAY BUT QUIETLY AVOIDING THE GAP ZONE BETWEEN 5808 TO 5818 FORMED BY MONDAY’S OPENING GAP HIGH BELOW FRIDAY’S LOW. SO, THE BULLS WOULD DEFINITELY PREFER TO ENTER THE GAP ZONE AND MORE IMPORTANTLY STAY ABOVE THE GAP. HOWEVER A FAILURE ON THE PART OF THE BULLS TO ENTER THE GAP OR FALL TO LOWER LEVELS BELOW THE GAP AFTER MAKING A FALSE ENTRY INTO THE GAP WILL AWAKEN THE RESTING BEARS TO CHASE THE BULLS AWAY AGAIN SOUTHWARDS TO FULFILL THE BALANCE OF THE NARROW GAP BETWEEN TUESDAY’S LOWS OF 5700 AND 6TH SEPTEMBER HIGH OF 5688 SPOT. ON TUESDAY THE BULLS PERHAPS LEFT THIS GAP BETWEEN 6TH SEPTEMBER HIGH OF 5688 & 10TH SEPTEMBER LOW OF 5738 HALF OPEN AS AN ESCAPE ROUTE SO THAT ON BEING CHASED BY THE BEARS FROM COMING FRIDAY OR EARLY NEXT WEEK, CAN AT LEAST CRAWL THROUGH IT TOWARDS 5631, 5579 OR EVEN 5510.

FOR INTRADAY TRADING ON THURSDAY, THE LEFT OVER MOMENTUM SHOULD CONTINUE UPWARDS (HOPING THAT TUESDAY’S HIGH CLOSING WAS NOT A BULL TRAP) & BULLS SHOULD TAKE FULL ADVANTAGE OF RESTING BEARS TO CONQUER THE GAP BETWEEN 5808 TO 5819. A FAILURE ON THE PART OF BULLS TO ENTER THE GAP OR FALTER WITHIN THE GAP WILL SEE THE BEARS CHARGING FROM ALL DIRECTIONS TO HAMMER THE BULLS OUT OF SHAPE SO THAT THE BULLS CAN FORGET THE GREEN HAMMER OF TUESDAY. THE SPOT ZONE BETWEEN 5765 TO 5747 IS TOO CRITICAL FOR THE BULLS TO HOLD ON TO THIS LEVELS FAILING WHICH BULLS WILL VANISH FROM THE SIGHT OF THE BEARS. IN ANY CASE FALLING BELOW SPOT NIFTY LEVEL OF 5747 AND SUSTAINING BELOW IT WILL SEE LOWER LEVELS OF 5727 FOLLOWED BY 5690 TO 5685 TO CLOSE AT LEAST THE ENTIRE GAP TILL 5688 SPOT THAT WAS LEFT HALF OPEN ON TUESDAY. SUSTAINING ABOVE MONDAY 30 SEPTEMBER GAP HIGH OF 5808 SPOT BY CLOSING A 30 MINUTE CANDLE ABOVE IT WILL NOT ONLY SEE NIFTY GOING UP TO CLOSE THE GAP TILL 5819 OR A LITTLE ABOVE IT TOWARDS 5828 BUT ALSO WILL AIM FOR HIGHER LEVELS OF 5844 FOLLOWED BY 5878 SPOT, ALTHOUGH STILL MUCH BELOW THE CRITICAL TURNING POINT RESISTANCE OF 5919 TO 5939 SPOT NIFTY ZONE. (INTRADAY TRADING LEVELS FOR NIFTY FUTURES IS FOR SUBSCRIBERS ONLY)

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