MARKETS FOR 1ST AUGUST

 NIFTY CONTINUED TO MAINTAIN THE BULLISH MOMENTUM INSPITE OF RBI GOVERNOR DRAWING BLANK AND OLD FINANCIAL CHANNELS SPEAKINGALL NEGATIVE THINGS ABOUT THE MARKETS THROUGHOUT THE DAY.  NIFTY AFTER THE RBI ANNOUNCEMENT OF STATUS QUO & NO CHANGE IN RATES SLIPPED TO AS LOW AS  5154 SPOT AND SHOWED A REMARKABLE BOUNCE FROM THE 89 DAY EMA THERE TO CLOSE IN THE FORM OF A BULLISH HAMMER TO CLOSE 29 POINTS UP AT 5229 ABOVE
THE RESISTANCE LINE COMING FROM THE SWING HIGH OF 5349 AND ‘B’ WAVE HIGH OF 5258 AS CAN BE SEEN IN THE DAILY CHART ABOVE. THE BOTTOMING OUT AND BOUNCING UP OF THE IMPORTANT DAILYINDICATORS WILL ENCOURAGE  TRADERS TO BOLDLY BUY THE INTRADAY DECLINESAND A RISE ABOVE SPOT NIFTY LEVEL OF5158 TO 5168 SPOT ZONE TO SUSTAIN ABOVE THE ‘B’ WAVE HIGH WILL CERTAINLY DRIVE SPOT NIFTY TO RETESTAND EVEN BREACH THE SWING HIGH OF 5349 TO AIM FOR THE 22ND FEB HIGH OF5630 IN NEXT FEW WEEKS.

AS PER THE INTRADAY CHARTS COUPLED WITH THE DAILY EOD CHARTS,  NIFTY LOOKS EXTREMELY STRONG FOR MUCH FURTHER UP MOVE AND ANY INTRADAY DECLINE LIKE THE ONE SAW ON TUESDAY MAY BE SUITABLY USED TO BOLDLY BUY &HOLD  FOR VERY GOOD GAINS. AS LONG AS SPOT NIFTY MANAGES TO SUSTAIN ABOVETHE CRITICAL SUPPORT OF 5145, EVERY INTRADAY DECLINE TOWARDS 5170 SPOTCAN BE BOUGHT INTO FOR GOOD GAINS BYHAVING A STOP LOSS BELOW 5145 SPOTLEVELS. THE GOLDEN CROSS OF 200 DMA BYTHE 50 DMA SIGNALS STRONG BULLISHCYCLE AND SPOT NIFTY DECISIVELY CLOSING FOR TWO CONSECUTIVE DAYS ABOVE THE CONFLUENCE OF 34, 50, 200 DAY EMAS AND ABOVE THE DAILY PIVOTARE STRONG BULLISH SIGNALS TO MAKEFULL USE OF INTRADAY DECLINES TO BUYAND HOLD.

NIFTY SPOT CLOSING THE JULY MONTH ABOVE THE MONTHLY 34 EMA SHOWSSTRENGTH  AND A CROSSOVER OF  5268 ABOVE THE MONTHLY RESISTANCE LINE COMING FROM THE SWING HIGH OF 5630 & RECENT JUNE HIGH OF 5349 WILL TRIGGER MASSIVE SHORT COVERING TO PROPEL NIFTY SPOT  MUCH HIGHER DURING THE MONTH OF AUGUST. FOR INTRADAYTRADING ON WEDNESDAY NIFTY MAY BE FORCED TO OPEN FLAT OR WEAK BY THE OPERATORS DULY SUPPORTED BY THE INTERESTED FINANCIAL CHANNELS WHO ARE HOLDING SHORT POSITIONS AND AREPUTTING WORDS INTO THE MOUTHS OF CONCERNED PERSONS AND ANALYSTS TO SPEAK  WEAKNESS  FOR THE MARKETS. SOONE CAN EXPECT NIFTY TO SLIDE AGAIN TOWARDS SUB 5200 TO BOUNCE UP AGAIN.OPERATORS INFECTED SGX NIFTY TOO WILL BE SUITABLY USED TO DEPICT NEGATIVE SENTIMENT BEFORE THE STARTOF THE MARKETS.

NIFTY FUTURE HAS STRONG SUPPORT AROUND THE   5210 TO 5205 LEVELS BELOW WHICH NIFTY FUTURES MAY SLIDETOWARDS 5180 TO SEE BULLS ENTERING IN A BIG WAY AGAIN FROM AROUND THESE LEVELS. SIMILARLY ON THE HIGHER SIDE NIFTY FUTURES MAY GAIN STRENGTH ABOVE THE CRITICAL ZONE OF 5295 OREVEN 5300 FUTURE LEVELS BY THE MERE STRENGTH OF SHORT COVERING. MAKE FULL USE OF INTRADAY DECLINE TO BUY AROUND 5210 TO 5205 FUTURE LEVELS BYHAVING A TIGHT STOP LOSS BELOW 5200 TO REVERSE FOR SHORTS. SIMILARLY ONECAN BUY NIFTY FUTURES ON APPROACH TOWARDS TUESDAYS LOWS OF 5170 WITH A REASONABLE STOP LOSS. A RISE OF NIFTY FUTURES ABOVE 5268 TO 5275 ZONE CAN ALSO BE BOUGHT INTO FOR GOOD INTRADAY GAINS. HOWEVER IN CASE SPOT NIFTY FAILS TO CROSS THE CRITICAL SPOTZONE OF 5258 TO 5268 THEN ONE MAY DISPLAY HIS ENTIRE SHORTING POWER TORUTHLESSLY SHORT THE MARKETS BY HAVING A STOP LOSS ABOVE 5268 SPOT NIFTY LEVELS.

Source:QueensTrade