MARKETS FOR 2ND AUGUST

 LIKE THE RBI GOVERNOR, EVEN FED DREW BLANK ON WEDNESDAY NIGHT AND LIKE THE INDIAN MARKETS, EVEN DOW DID NOT FALL MUCH, PERHAPS THE DOW OPERATORS ARE  PRESERVING THEIR SHORTING ENERGY FOR THURSDAY OR FRIDAY NIGHT. FOR INDIAN MARKETS ONE MAY EXPECT THE CONDITION SIMILAR TO WEDNESDAY WITH A NEGATIVE
BIAS. EVERY INTRADAY DECLINE TOWARDS LOWS OF WEDNESDAY OR AT THE WORST TOWARDS THE  CRITICAL 5200 MAY BE BOUGHT INTO FOR GOOD GAINS. SIMILARLY ON THE HIGHER SIDE RISE OF SPOT NIFTY TOWARDS OR EVEN NEARER TO 5258  OR 5268 SPOT ZONE MAY BE BOLDLY SHORTED FOR QUICK  INTRADAY GAINS BY HAVING STOP LOSS ABOVE THIS ZONE TO REVERSE  THE TRADE.

FOR THE PURPOSE OF TRADING NIFTY FUTURES, ONE MAY TRADE LONG IN NIFTY FUTURES IN CASE IT APPROACHES 5230 TOWARDS 5225 TO HAVE A STOP BELOW 5220 TO BOLDLY REVERSE FOR PUNITIVE SHORTS TOWARDS INTRADAY TARGETS OF 5200 OR LOWER FUTURE LEVELS OF 5170. SIMILARLY ON THE HIGHER SIDE FUTURE TRADERS MAY TRADE SHORT IN CASE NIFTY FUTURES APPROACHES TOWARDS THE ZONE OF 5275 TO 5280 BY HAVING A STOP LOSS ABOVE 5290 TO REVERSE FOR LONGS IN ORDER TO FETCH QUICK INTRADAY GAINS.

AS FED HAS DRAWN BLANK, MOST LIKELY THE OUTCOME OF ECB MEETING ON THURSDAY NIGHT MAY TAKE OUT SOMETHING ALLURING TO TRAP THE BULLS ON FRIDAY. SO, ONE MAY PLAN TO BUY PUTS OR EVEN CARRY SHORT POSITIONS AFTER INITIAL RISE ON THURSDAY OR AFTER A DEAD CAT BOUNCE FOLLOWING THE OPERATOR INDUCED FALL ON THURSDAY IN INDIAN MARKETS. BULLS WHO HAVE ENJOYED THE LUXURY OF FOUR CONSECUTIVE DAYS OF RISE IN INDIAN MARKETS FROM FRIDAY MAY START TO HEDGE THEIR POSITIONS OR BOOK PARTIAL PROFIT AS THE ECB MEETING EVEN IF FOOLS EVERYONE BY DISPLAYING SOME ENCOURAGING PLOTS FOR EUROPE MAY ACTUALLY HAND OVER ON A PLATTER THE SHORTING POWERS TO THE MONSTER DOW OPERATORS TO SHORT THE MARKETS FROM LATE THURSDAY OR FRIDAY. THURSDAY MAY BE A FLAT  GRINDING DAY  NOT MUCH DIFFERENT FROM WEDNESDAY AS LONG AS IT DOES NOT BREACH TO SUSTAIN BELOW THE LOWS OF WEDNESDAY.

Source:QueensTrade