MARKETS FOR 24TH AUGUST

AS EXPECTED NIFTY AFTER REACHING AND BREACHING THE PREVIOUS DAYS HIGHS  CORRECTED AND OUR PRINCIPLE OF RUTHLESS SHORTING THE MARKETS AFTER NIFTY FUTURE BREACHED THE WEDNESDAY’S HIGHS OF 5455 TO REACH 5460 YIELDED HANDSOME GAINS. FOR NEXT FEW DAYS THIS GOLDEN PRINCIPLE OF SHORT ON RISE SHOULD BE ADOPTED AS PRESENTLY NIFTY IS IN A PAUSE MODE AND LIKELY TO
CORRECT A BIT BEFORE THE MEGA UP MOVE RESUMES. FOR LONG TO MEDIUM TERM INVESTORS, IT IS A GOLDEN OPPORTUNITY TO QUIETLY ACCUMULATE   BADLY BEATEN DOWN STOCKS GRADUALLY ON EVERY FALL FOR SUPER GAINS ONCE THE UP MOVE RESUMES. EVEN FOR INTRADAY TRADERS, A FAILURE TO BREACH A RETRACEMENT HIGH  AFTER THE DOW INDUCED INITIAL FALL CAN BE RUTHLESSLY SHORTED FOR GOOD INTRADAY GAINS.

FOR FRIDAYS INTRADAY TRADING PURPOSE, THE FACTORS THAT MAY INFLUENCE THE MOVEMENT OF INDIAN MARKETS ARE FIRSTLY THE OVERNIGHT DOW’S MANIPULATED FALL. THE WAY HIGHLY OPERATOR INFECTED STOCKS LIKE HDIL HAS STARTED TO FALL FOR SOME DAYS IS A CLEAR INDICATION THAT NIFTY WILL BE MANIPULATED TO FALL SOME MORE. KEEP A CLOSE EYE ON THE HIGHLY OPERATOR INFECTED STOCKS LIKE HDIL, PETRONET, BIOCON ETC TO DECIDE THE LIKELY ACTION  OF THE  OPERATORS. THESE HIGHLY OPERATOR INFECTED STOCKS SPECIALLY HDIL IS LIKELY TO BE KEPT SUBDUED FOR SOME MORE SESSIONS TILL EXPIRY SIMILAR TO LAST MONTH. THE MANIPULATION OF THE MARKETS THROUGH EXTERNAL AS WELL AS INTERNAL OPERATORS IS THE MAIN REASON FOR SLUGGISHNESS IN INDIAN MARKETS. THE OTHER FACTOR COULD BE THE WEEKEND PHOBIA THAT MAY ATTRACT WEAKER HANDS TO POCKET SOME PROFIT.

LAST WEEK SPOT NIFTY HAD CLOSED AT 5366 WITH WEEKLY LOW AT 5341. THIS WEEK NIFTY WAS TAKEN UP AS HIGH AS 5448 SPOT. HENCE A CUSTOMARY DOWN SIDE RETRACEMENT WAS VERY MUCH ON THE CARDS AND ONE SHOULD NOT BE SURPRISED TO SEE NIFTY SPOT BEING MADE TO CLOSE BELOW 5400 TO FACE THE WRATH OF DOW OPERATORS  AGAIN ON FRIDAY NIGHT. DOW WILL BE PULLED DOWN TOWARDS MUCH LOWER LEVELS WITH PAUSES AND TRAPPING ACTIONS IN BETWEEN FOR NEXT FEW DAYS THAT MAY SEE ITS ASIAN WHIPPING BOYS FALLING IN SYMPATHY. SO, ALTHOUGH THE BULL RUN IS VERY MUCH INTACT ONE MUST EXPECT SOME OPERATOR INFECTED DOWN SIDE TO RETRACE A PORTION OF THE RISE FROM JULY 26TH EXPIRY DAY MANIPULATED LOW OF 5031 SPOT TILL 23RD AUGUST INTRADAY HIGH OF 5448 SPOT. HENCE SHORT ON RISE IS THE IDEAL PRINCIPLE TO BE APPLIED FOR GOOD INTRADAY GAINS.

FOR TRADERS OF NIFTY FUTURES ON FRIDAY, AS CAN BE SEEN IN THE 30 MINUTE CHART OF NIFTY FUTURES ABOVE, NIFTY FUTURE HAS MADE A LOW OF 5404 ON THURSDAY AND AFTER MAKING A PIN BAR HAS BOUNCED UP TILL 5432 TO CLOSE AROUND THE PIVOT AT 5431. ALTHOUGH TECHNICALLY IT IS A HIGHLY BULLISH SIGNAL, YET THE OVERNIGHT DOW MENACE WILL NEVER ALLOW THAT TO HAPPEN & ONE SHOULD EXPECT A GAP DOWN OPEN TO TRAP THE OVER NIGHT BULLS WHO CARRIED LONG POSITIONS. HOWEVER AS LONG AS THE PIN BAR LOW OF 5404 FUTURE LEVEL IS NOT BREACHED THERE IS NO FEAR FOR THE BULLS. THE PANICKY MAY COMMENCE ON BREACH OF THE THURSDAYS LOWS THAT MAY SEE 100 METER DASH BY THE WEAKER BULLS, BEING WHIPPED LEFT, RIGHT & CENTRE  BY THE CHASING BEARS. OLD FINANCIAL CHANNELS WHO ARE HOLDING SHORTS FOR LONG TIME WITH UTMOST PATIENCE WILL ALSO ADD THEIR QUOTA OF MISERY FOR THE BULLS BY PULLING OUT OLD HARASSING NEWS FROM THE CUPBOARD TO GENERATE FURTHER PANIC THAT WILL PULL THE MARKETS FURTHER DOWN TO THEIR ADVANTAGE. NIFTY FUTURE LEVEL OF 5393 TO 5388 IS A CRITICAL ZONE SUSTAINING BELOW WHICH MAY SEND THE BULLS PACKING FOR A GREAT WEEKEND.

NIFTY FUTURE HAS INTRADAY SUPPORT AROUND 5404 to 5400 ZONE WHICH THE BULLS MUST PROTECT IN SPITE OF BOUTS AFTER BOUTS OF OLD HARASSING NEWS FROM OLD FINANCIAL CHANNELS ARE AIRED TO PULL THE MARKETS FURTHER DOWN.  A BREACH OF 5400 FUTURE LEVELS MAY SEE NIFTY FUTURE SLIPPING TOWARDS 5393 TO 5388 ZONE  FOLLOWED BY 5377 OR EVEN 5360 TO CONTEST LAST FRIDAYS  CAG  REPORT PANICKY BOTTOM OF 5353. SIMILARLY ON THE HIGHER SIDE IN CASE NIFTY FUTURES MANAGES TO HOLD  THURSDAYS LOWS OF 5404 THEN THERE IS EVERY POSSIBILITY OF AN UP SIDE BOUNCE TOWARDS 5438 TO 5440 FUTURE LEVELS & THAT SHOULD SEE THE BEST ON FRIDAY AS OPERATORS WILL NEVER ALLOW NIFTY FUTURES TO SUSTAIN ABOVE 5440 TO 5450 ZONE UNDER THE WITCHY EYES OF SENIOR EXTERNAL OPERATORS OPERATING FROM SINGAPORE, HONG KONG & DUBAI. SO, THE PRINCIPLE OF SHORT ON EVERY INTRADAY RISE MAY BE ADOPTED TILL SUCH TIME NIFTY FUTURE CONTINUES TO ROT UNDER 5440 TO REVERSE FOR LONGS ONLY ABOVE THIS LEVEL POSSIBLY NEXT WEEK.