MARKETS FOR 8TH AUGUST

WELL, THE MARTIAN TUESDAY OF 7TH AUGUST WILL BE REMEMBERED FOR MAY WEEKS AS NIFTY SPOT  NOT ONLY HAMMERED  & KNOCKED THE STEAM OUT OF THE  11TH JULY HIGH BUT ALSO TESTED & BREACHED THE 10TH JULY HIGH OF 5349 TO REACH TILL 5350. HOWEVER THE CLOSURE OF SPOT NIFTY AT 5336 JUST BELOW THE 10TH JULY CLOSING OF 5345 MAY DISHEARTEN  THE BULLS A BIT BECAUSE AS LONG AS SPOT NIFTY DOES NOT DECISIVELY CLOSE ABOVE THE SWING HIGH OF 10TH JULY AT
5349, THERE COULD BE A MINOR CORRECTION TO WEED OUT THE WEAKER HANDS WHO ARE ALMOST CERTAIN OF BREACHING THE NEXT SWING HIGH OF 5630 .THE MACD HOOK FORMED FOR SPOT NIFTY AS CAN BE SEEN IN THE DAILY CHART ABOVE WILL GENERATE ACCELERATED EFFECTS AFTER A CLOSURE OF SPOT NIFTY ABOVE 5353 WHICH IS SLIGHTLY ABOVE THE NECK LINE OF THE INVERTED HEAD & SOLDER FORMATION AS CAN BE SEEN IN THE CHART ABOVE.

AS HAS BEEN MENTIONED BELOW IN THE WEEKLY ANALYSIS FOR WEEK ENDING 10TH AUGUST, NIFTY AFTER BREACHING THE ‘B’ WAVE HIGH OF 5258 TO 5268, HAD TO CROSS THE SWING HIGH OF 5349 AND ONE SHOULD NOT BE SURPRISED TO SEE MUCH HIGHER LEVELS DURING AUGUST ITSELF. AS CAN BE SEEN IN THE DAILY CHART OF SPOT NIFTY ABOVE, NIFTY HAS TESTED THE NECK LINE OF INVERTED HEAD & SOLDER FORMATION AROUND 5340 TO 5350 LEVELS ON TUESDAY & IF EVERYTHING MOVES SMOOTHLY WITHOUT MUCH OPERATORS INTERFERENCE THEN THE DEADLY SATURNIAN DATE OF 8TH AUGUST MAY SEE NIFTY CLOSING ABOVE THE NECKLINE OF 5350 TO 5353 ALTHOUGH BULLS MAY HAVE TO SHED A LOT OF BLOOD FOR IT DURING THE COMING DAYS.

NIFTY HAS ALREADY BREACHED THE CRITICAL FIBO 61.2% RETRACEMENT LEVEL OF 5301  COUNTED FROM THE 22ND FEB SWING HIGH OF 5630 TILL THE  4TH JUNE SWING LOW OF 4770  WHEN IT WENT UP TILL 5350 ON TUESDAY 7TH AUG. INTERESTINGLY THE SAME FIBO 61.8% LEVEL WAS ALSO REACHED ON 10TH JULY, BUT  ONLY TO SEE OPERATORS PLAYING MARY HELL WITH INDIAN MARKETS TO PULL IT DOWN TO THE DECEPTIVE LOW OF 5032 ON THE 26TH JULY EXPIRY DAY TO WEED OUT THE WEAKER HANDS. SO BULLS NEED NOT REJOICE AS YET TILL SUCH TIME SPOT NIFTY DOES NOT DECISIVELY CLOSE ABOVE THE NECK LINE OF INVERTED HEAD & SOLDER  FOR SOME MORE DAYS. HOWEVER TECHNICALLY THE MARKETS LOOK EXTREMELY BULLISH AND ENCOURAGES ONE TO BUY THE DECLINES FOR EXTREMELY GOOD GAINS BY DEWALI OF 2012.

GENERALLY AROUND THE NECK LINE OR THE FIBO LEVELS, OPERATORS ARE BESTOWED WITH  GREAT MANIPULATIVE POWERS TO PULL THE MARKETS DOWN TO WEED OUT WEAKER HANDS. SO, THIS TIME ALSO ONE SHOULD WAIT AND SEE HOW POWERFUL IS THE OPERATORS ACTION FROM THE DEADLY SATURNIAN DATE OF 8TH AUG TO PULL THE MARKETS DOWN EVEN THOUGH THE MARKETS LOOK EXTREMELY STRONG TECHNICALLY. IN CASE SPOT NIFTY HAS A DECISIVE CLOSE ABOVE THE NECK LINE OR ABOVE THE CRITICAL LEVEL OF 5353 THEN ONE WILL SEE BEARS QUIETLY GETTING CONVERTED AS BULLS  TO SEE MUCH HIGHER LEVELS IN AUGUST ITSELF. HOWEVER IF THE BULLS SLACKEN AT THIS STAGE THEN ONE SHOULD NOT BE SURPRISED TO SEE  A REPEAT OF THE EARLIER FALL FROM 10TH JULY HIGH OF 5349 TILL 26TH JULY EXPIRY DAY MANIPULATED LOW OF 5032.

FOR INTRADAY TRADING ON THE SATURNIAN DATE OF 8TH AUGUST, BARRING DIRTY GAME PLAYED BY THE OPERATORS, ONE MAY CERTAINLY FIND ANOTHER GAP UP OPENING FOR NIFTY TO STRAIGHT EYE FOR THE NECK LINE INITIALLY FOLLOWED BY THE CRITICAL RESISTANCES OF 5379 AND 5386 WHICH MAY PROVIDE BOOSTER DOSES TO THE TIRED BULLS IN ORDER TO MOVE UP TOWARDS THE HIGHER RESISTANCES OF 5499 AND 5630 AS CAN BE SEEN IN THE CHART ABOVE. HOWEVER A FAILURE ON THE PART OF THE BULLS TO LIFT SPOT NIFTY ABOVE 5353 TO CLOSE ABOVE IT MAY GIVE THE BULLS SOME DAYS OF REST TO RECUPERATE & TRY AGAIN AFTER SOME DAYS.

FOR TRADING NIFTY FUTURES, THE STRONG SUPPORT FOR NIFTY FUTURES IS AROUND THE ZONE OF 5320 TO 5310 ABOVE WHICH ONE MAY PLAN TO TRADE LONG WITH STOP LOSS BELOW THIS ZONE TO REVERSE & RUTHLESSLY SHORT FOR QUICK INTRADAY GAINS. SIMILARLY ON THE HIGHER SIDE THE FUTURE LEVELS OF 5370 TO 5380 IS A CRITICAL RESISTANCE ZONE WHERE ONE MAY PARTIALLY BOOK PROFIT ON LONGS AND THE CALLS OR MAY EVEN TRY SHORTS AND BUY PUTS WITH STOP LOSS ABOVE THIS ZONE TO REVERSE & GO MEGA LONG FOR QUICK GAINS.