MARKETS FOR 19TH JULY

STILL WE MAINTAIN OUR BEARISH OUTLOOK ON THE MARKETS AS LONG AS SPOT NIFTY CONTINUES TO TRADE BELOW THE GIVEN CRITICAL LEVEL OF 5267. THE WAY NIFTY BOUNCED AFTER TESTING THE CRITICAL SPOT LEVEL OF 5170 AFTER BREACHING THE 29TH JUNE GAP LOW OF 5188 TO AGAIN BOUNCE UP AND CLOSE AT 5216 SPOT MUCH ABOVE THE GAP LOW & SECONDLY  TO MOVE UP TILL
5222 TO
FINALLY CLOSE THE DAY IN THE FORM OF A BULLISH HAMMER, ALTHOUGH GENERATES EARLY INDICATION OF  BOTTOMING OUT, YET THE WAY OPERATORS ARE RAMPANT IN INDIAN MARKETS, THIS BULLISH LOOKING GREEN HAMMER MAY BE TERMED AS A DECEPTIVE ONE AND A PERFECT BULL TRAP FOR THE TRADERS WHO OUT OF THEIR OVER EXUBERANCE  CARRIED LONG POSITIONS OVER NIGHT. AT THE BEST NIFTY MAY OPEN HIGHER ON THURSDAY MORNING FOLLOWING BUOYANT ASIAN MARKETS SOME OF WHICH WERE HAMMERED OUT OF SHAPE ON WEDNESDAY, ONLY TO SLIDE AGAIN TOWARDS SUB 5200 SPOT LEVELS TO RETEST OR EVEN BREACH THE WEDNESDAYS LOWS OF  5170 SPOT TO BOUNCE UP AGAIN.


OTHER THAN THE INITIAL ERRATIC TRADING MINUTES OR OTHER THAN A GAP UP OPENING, IN CASE SPOT NIFTY DURING THE ACTUAL TRADING MANAGES TO TRADE AND SUSTAIN ABOVE THE CRITICAL LEVEL OF 5246 TO 5252  ZONE THEN ONE MAY TRADE LONG AND ABOVE THE CRITICAL SPOT NIFTY LEVEL OF 5267 MORE LONG POSITIONS MAY BE ADDED. FAILURE  ON THE PART OF SPOT NIFTY TO BREACH THE INITIAL HURDLE OF 5247 TO 5252 ZONE MAY BE USED TO SHORT THE MARKETS WITH VICIOUS FORCE AND MORE SHORTS BE ADDED ON EVERY DECLINE TO SEE SPOT NIFTY SLIDING TOWARDS SUB 5200 LEVELS TO SEE  WEDNESDAYS LOWS OF 5170. RISKY TRADERS MAY TAKE A CHANCE OF TRADING LONG IN CASE SPOT NIFTY MANAGES TO TRADE ABOVE THE WEDNESDAY’S HIGH OF 5225 AND MORE LONGS BE ADDED IN A RHYTHMIC PATTERN ABOVE 5252 & ONE MAY EVEN GO MEGA LONG IN CASE SPOT NIFTY SUSTAINS ABOVE 5267.  MOST LIKELY IT MAY BE EXTREMELY TOUGH FOR INDIAN BULLS TO TAKE SPOT NIFTY ABOVE THE CRITICAL 5267 LEVELS ON THURSDAY EVEN THOUGH THE NEW MOON GIVES THEM ALL THE GO AHEAD POWER TO TAKE THE MARKETS UP.


FOR NIFTY FUTURE TRADERS, NIFTY FUTURE ON WEDNESDAY HAS MADE A LOVELY 2 IN 1 IN SIDE BAR SETUP ABOVE THE PIVOT DURING THE LAST 90 MINUTES WITH THE 2.30 P.M. ENDING BIG GREEN MOTHER CANDLE HIGH OF 5237 & LOW OF 5203. THE 30 MINUTE 200 EMA IS CAMPING AROUND 5238 TO 5240 LEVELS. IN CASE BULLS CAN MANAGE TO PUSH NIFTY FUTURES ABOVE THE HIGH OF THE 2 IN 1 INSIDE BAR SETUP AND SUSTAIN ABOVE THE 200 EMA AROUND 5240 TO HAVE A 30 MINUTE CANDLE CLOSE ABOVE IT THEN ONE MAY WITNESS RECORD SHORT COVERING TO PROPEL NIFTY FUTURES TOWARDS THE NEXT LOGICAL RESISTANCE OF 5280 FUTURE LEVELS TO STRAIGHT AIM FOR THE ATTRACTIVE GAP OF 11TH & 12 JULY TO PIERCE THE GAP TO FILL IT UP TILL 5323 FUTURE LEVELS BY THE WEEK END. HOWEVER A FAILURE ON THE PART OF THE BULLS TO BREACH AND SUSTAIN ABOVE 5240  MAY MASSACRE THE BULLS  TO SEE  NIFTY FUTURES NOSE DIVING TOWARDS SUB 5200 LEVELS IN NO TIME TO HAVE THE RETEST OF WEDNESDAYS LOWS.


SO, ALL IN ALL NIFTY FUTURE WILL TURN BULLISH AFTER HAVING A 30 MINUTE CANDLE CLOSING ABOVE 5240 AND MORE BULLISH ABOVE 5280 FUTURE LEVELS . SIMILARLY NIFTY FUTURE WILL TURN WEAK IN CASE OF A FAILURE TO ACHIEVE THIS AIM AND MORE WEAKNESS BE SEEN BELOW FUTURE LEVELS OF 5202 FOLLOWED BY SUB 5196  FUTURE LEVELS.