AFTER THE INITIAL HITCH DUE TO THE DOW INDUCED NEGATIVE OPENING OF SPOT NIFTY AT 5336 ON TUESDAY, TO FALL TILL 5332 MUCH BELOW THE MONDAYS MINI DOJI LOW OF 5349 & THEN SHOWING A REMARKABLE BOUNCE LATER IN THE DAY TO RISE TO A DAY’S HIGH OF 5393 TO CLOSE THE DAY AT 5390 THAT TOO MUCH ABOVE MONDAY’S DOJI HIGH OF 5375 & ABOVE THE DAILY PIVOT IS A MEGA BULLISH SIGNAL
TECHNICALLY TO SHOOT UP AND CONTEST THE NEAREST SWING HIGH OF 5449 THAT WAS REACHED ON 23RD AUGUST.
THE PRESENT TECHNICAL INDICATIONS ALONG WITH THE HIGHLY BULLISH LOOKING DAILY INDICATORS ENCOURAGES ONE TO WAIT FOR EVEN A MINOR DECLINE TO BUY AND HOLD THE POSITIONS WITH THE STOP LOSS BELOW 5330 SPOT, AS THERE ARE EARLY INDICATIONS OF NIFTY MOVING UP TO BREACH THE NEAREST SWING HIGH OF 5349 TO MOVE TOWARDS THE NEXT HIGH OF 5499 & THEN TO STRAIGHT EYE FOR THE MAJOR RESISTANCE AT 5630 IN NEXT FEW WEEKS.
THE BULLISH CANDLE FORMED ON TUESDAY WAS AN OUT SIDE BAR FORMATION TO BOTH THE CANDLES OF MONDAY & INSIGNIFICANT SATURDAY AND NIFTY HAVING CLOSED ABOVE THE DAILY PIVOT MAY SEE A BIG GAP UP OPENING TO BE FOLLOWED BY THE AS USUAL FLAT PRICE ACTION FOR HOURS TO INDUCE DAY TRADERS TO BOOK PROFIT IN DISGUST BUT THEN ONLY TO MOVE UP HIGHER AFTER THE WEAKER TRADERS ARE OUT OF THE GAME. SO INSTEAD OF BUYING THE OPENING GAP, IT WOULD BE MORE PROFITABLE TO BUY THE MINOR DECLINE DURING THE DAY OR IN CASE THE MANIPULATED EUROPEAN MARKETS HAVE A NEGATIVE OPENING TO INDUCE A FALL IN INDIAN MARKETS. TRADERS MAY BUY THE DECLINES & HOLD INTRADAY LONGS BY HAVING A QUIT POINT BELOW SPOT 5360 LEVELS OR BELOW THE SPOT 5350 LEVELS AND RIDE THE LONGS FOR GREAT GAINS.
FOR INTRADAY TRADING PURPOSE, SPOT NIFTY HAS INITIAL SUPPORT AROUND 5393 FOLLOWED BY 5373 & THEN 5363. THE RESISTANCES FOR SPOT NIFTY ARE AROUND 5420 FOLLOWED BY 5434 SUSTAINING ABOVE WHICH 23RD AUGUST HIGH OF 5449 LOOKS TO BE A CERTAINTY IF NOT ON WEDNESDAY THEN IT MAY BE BY END OF THIS WEEK. ALTHOUGH THE PRICE ACTION AS OF NOW CERTAINLY LOOK HIGHLY BULLISH, YET THE TRADERS SHOULD NOT LOSE SIGHT OF THE MOST IMPORTANT FACTOR OF OPERATORS’ MANIPULATION TO SUDDENLY PULL THE MARKETS DOWN TO ENSURE MASS EXODUS OF WEAKER HANDS. ONE MUST REMEMBER THAT IN MODERN DAY MARKET SCENARIO, OPERATORS ACTION, LIQUIDITY FOLLOWED BY THE MANIPULATED NEWS EVENTS PLAY A MUCH BIGGER ROLE IN PRICE MOVEMENTS THAN THE TECHNICALS OR THE FUNDAMENTALS. OTHERWISE THE MARKETS ARE EXTREMELY BULLISH THAT ENCOURAGES ONE TO BUY THE DECLINES AND RIDE THE BULL RUN BY HAVING A REASONABLE TRAILING STOP LOSS.
Source: Queens Trade
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