MARKETS FOR 20TH JULY

AS PREDICTED, NIFTY OPENED GAP UP AND IN SPITE OF REPEATED ATTEMPTS IT COULD NOT REACH THE CRITICAL SPOT NIFTY LEVEL OF 5267. IT MANAGED TO REACH THE DAY HIGH OF 5257 AND FELL SHORT BY 10 POINTS FROM THE CRITICAL SPOT NIFTY LEVEL OF 5267. AS LONG AS SPOT NIFTY DOES NOT DECISIVELY CROSS THE CRITICAL GAP HIGH OF 5267 TO CLOSE ABOVE IT FOR A DAY OR TWO,  
ONE MUST BE REASONABLY SURE TO SEE NIFTY FALLING TO SUB 5200 SPOT LEVELS AGAIN TO RETRACE TILL THE MINIMUM REQUIRED 38.2% FIBONACCI  LEVEL OF 5127 SPOT.  INTERESTINGLY, THURSDAY SAW NIFTY MOVING THE MINIMUM AMOUNT OF 24 POINTS ONLY  WITH A HIGH OF 5257 AND LOW OF 5233 THUS FORMING A CRITICAL 7TH NRB WITH A GAP ABOVE THE WEDNESDAYS NEPALI HAMMER HIGHS. NOW THIS FORMATION IS HIGHLY CRITICAL AS IT CAN TURN OUT TO BE AN EVENING STAR FORMATION  TO SEE LOWER LEVELS ON BREACHING WEDNESDAY LOWS OF 5233 TO FILL THE DOWN SIDE GAP TILL 5222 SPOT OR THIS 7TH NRB OF WEDNESDAY MAY ACT AS A COILED SPRING TO CATAPULT NIFTY SPOT TOWARDS 5267 INITIALLY & THEN COVER THE 11TH JULY GAP TILL 5300 SPOT NIFTY LEVELS.

SO, FOR FRIDAYS TRADING PURPOSE,  ONE MAY TRADE LONG INCASE SPOT NIFTY SUSTAINS ABOVE THURSDAYS GAP LOW OF 5233 WITH A STOP LOSS AT A REASONABLE DISTANCE BELOW IT. SIMILARLY AN APPROACH TOWARDS 5267 SPOT MAY BE USED TO TRADE SHORT WITH A STOP LOSS ABOVE IT TO REVERSE AND TRADE LONG FOR MUCH HIGHER LEVELS. SIMILARLY FOR FUTURE TRADERS NIFTY FUTURE LEVEL BETWEEN 5277 AND 5285 IS CRITICAL FOR THE BULLS TO PUSH NIFTY FUTURE ABOVE IT TO INDUCE SOME SHORT COVERING BY THE WEAK BEARS THAT CAN PROPEL NIFTY FUTURES TOWARDS 5300 TO 5310 LEVELS IN QUICK TIME AS MASSIVE BUYING MAY COME IN AS NIFTY FUTURE MANAGES TO BREACH 5290 LEVEL.

SO, ALTHOUGH TECHNICALLY THE MARKETS ARE POISED FOR A QUANTUM JUMP UPWARDS BECAUSE OF THE DOJI  & 7TH  NRB FORMATION ABOVE THE DAILY PIVOT AND ABOVE THE LAST TWO DAYS HIGHS, YET THE  MANIPULATIVE OPERATORS ACTION IN SOME INDEX HEAVIES MAY NOT ALLOW NIFTY TO CROSS AND SUSTAIN ABOVE THE SPOT NIFTY LEVEL OF 5267 WHICH HAD FORMED AN OUT SIDE BAR SETUP ON 12 & 13 JULY CANDLES WITH A BIG GAP ABOVE IT TILL 5300 SPOT. FRIDAY MAY SEE MANY BIG OPERATORS TREATING IT AS THE EXPIRY DAY AND ONE  SHOULD NOT BE SURPRISED TO SEE EVEN HIGHLY OPERATOR INFECTED SGX NIFTY WHICH GENERALLY TRADES WITH FINGER COUNTING VOLUME DAILY  MAY SUDDENLY SHOW A MASSIVE SPURT  IN ITS VOLUME. LAST FRIDAY NIFTY SPOT HAD CLOSED AT 5227 MUCH BELOW ITS PREVIOUS WEEK ENDING LOW OF 5257. SO ANOTHER LOWER CLOSING OF SPOT NIFTY BELOW LAST FRIDAYS CLOSING OF 5227 WILL MAKE IT THE 2ND CONSECUTIVE LOWER WEEKLY CLOSING AFTER 5 MEGA BULLISH WEEKS OF +VE CLOSINGS.  DOW MOST LIKELY WILL FALL ON FRIDAY NIGHT TO PULL DOWN ASIAN MARKETS ON MONDAY MORNING.


Source: queenstrade.com