LAST WEEK ENDING 14TH SEPTEMBER, AS EXPECTED NIFTY MADE A MONSTROUS UP MOVE TO REACH A WEEK ENDING HIGH OF 5587 FROM A WEEKLY LOW OF 5332 AND CLOSED THE WEEK AT 5578 WITH A GAIN OF MORE THAN 5% THAT TOO MUCH HIGHER THAN THE PREVIOUS WEEK ENDING 8TH SEPT HIGH OF 5366, LOW OF 5215 AND CLOSING OF 5358. THE MORE IMPORTANT FACTOR TO BE KEPT IN MIND IS THAT THE MONSTROUS WEEKLY GREEN CANDLE THAT WAS FORMED HAS PIERCED THE WEEKLY BOLLINGER BAND TO CLOSE THE WEEK MUCH ABOVE THE UPPER BAND FOR
THE FIRST TIME SINCE THE WEEK ENDING 1ST OCTOBER 2010. THE OUTWARD EXTENDING OF THE WEEKLY BOLLINGER BAND IS A MEGA BULLISH SIGNAL FOR MANY MORE WEEKS TO COME AND A DAILY CLOSE ABOVE THE NEAREST SWING HIGH REACHED ON 22ND FEB AT 5630 WILL SEE ACCELERATED UP MOVE FOR SPOT NIFTY AS PART OF THE MONSTER 3RD SUB WAVE OF THE 3RD MAJOR UP WAVE THAT WILL EASILY MAKE NEW LIFE TIME HIGHS ABOVE THE 8TH JANUARY 2008 HIGH OF 6357.
AT THE PRESENT CONDITION THE INDICATORS IN THE MONTHLY CHARTS LOOK MEGA BULLISH AND PRESENTLY NIFTY TRADING AROUND 5575 IS MUCH HIGHER THAN THE MONTHLY DUO OF 20 AND 34 MONTHLY AVERAGES AROUND 5350 SPOT. THE MONTHLY STOCH IS LOOKING MEGA BULLISH AND THE MONTHLY MACD IS ALSO ON THE VERGE OF FORMING A MACD HOOK WHICH TILT THE BALANCE HEAVILY IN FAVOR OF THE BULLS SUGGESTING TO BUY EVERY DECLINE FOR GREAT GAINS. A DECISIVE CLOSE OF SPOT NIFTY ABOVE THE 1ST SUB WAVE HIGH OF THE 3RD UP WAVE AT 5630 WILL PULVERIZE THE BALANCE OF THE BEARS WHO WILL HAVE NO OTHER ALTERNATIVE THAN TO COVER THEIR REMAINING SHORTS TO GET CONVERTED BEFRIEND THE EXISTING BULLS TO RIDE THE MARKETS FOR A NEW LIFE TIME HIGH.
To view charts click here http://liveglobalmarket.blogspot.in/2012/09/nifty-spot-6-months-chart-from-20-feb.html
THE WEEKLY CHARTS ALSO CONTINUE TO LOOK HIGHLY BULLISH WITH NIFTY HAVING BREACHED THE MAJOR RESISTANCE LINE COMING FROM DEWALI 5TH NOV 2010 HIGH OF 6338 AND A WEEKLY CLOSE MUCH ABOVE THE RESISTANCE LINE THROUGH A MONSTROUS GREEN CANDLE PIERCING OUT OF THE WEEKLY BOLLINGER BAND ENABLING THE WEEKLY BOLLINGER BANDS TO EXTEND OUTWARDS SHOULD SEE MANY MORE WEEKS OF UP MOVE TOWARDS THE NEXT RESISTANCE LINE JOINING THE DOUBLE HEAD HIGHS OF 8TH JAN 2008 AROUND 6357 AND 5TH NOV 2010 HIGHS OF 6338 WHICH IS NOW AROUND 6300 SPOT NIFTY LEVELS. THE FALL FROM 5630 TILL 4770 WAS IN A ‘ABC’ ZIGZAG PATTERN & THE CLOSURE OF SPOT NIFTY AROUND 5575 ABOVE THE ‘B’ HIGH OF 5499 TO CLOSE HIGH ABOVE IT WILL EASILY CATAPULT NIFTY TO BREACH THE 22ND FEB HIGH OF 5630 TOWARDS THE MAJOR RESISTANCE AROUND 6300 SPOT NIFTY LEVELS IN NEXT FEW WEEKS.
THE DAILY CHARTS LOOK HIGHLY BULLISH EVEN THOUGH SOME OF THE DAILY INDICATORS ARE CAMPING WITHIN THE OVERBOUGHT LEVELS. THE INVERTED HEAD & SOLDER FORMATION AS CAN BE SEEN IN THE DAILY CHART ABOVE HAS THE NEAR TERM TARGET AT 5950 WHICH IS 600 POINT FROM THE SECOND TIME BREAKOUT POINT OF 5350 EQUAL TO THE 600 POINT FROM THE LOW F THE INVERTED HEAD AT 4770 TO THE POINT IN THE NECK LINE AROUND 5370 VERTICALLY ABOVE THE INVERTED HEAD. THE HIGH OF THE UPWARDS LOOKING RECTANGULAR CHANNEL WHICH ALSO IS AROUND 5630 NOW MAY POSE SOME RESISTANCE IN CASE THE RBI GOVERNOR FALTERS IN CUTTING CRR RATES THAT MAY SEE A TEMPORARY HALT TO THE 8 CONSECUTIVE DAYS OF UP MOVE AFTER WEDNESDAY 5TH SEPTEMBER LOW OF 5215 SPOT .
IN CASE RBI GOVERNOR IS CONCERNED ABOUT THE NATIONAL GROWTH AND INDUSTRY AND CUTS THE RATES BY EVEN 25 BASIS POINTS THEN NIFTY SPOT MAY TAKE ANOTHER 100 POINT JUMP IN SECONDS ONLY TO EYE FOR THE 5702 TO 5740 SPOT NIFTY LEVELS THAT WILL BE THE CUMULATIVE EFFECT OF THE CONSECUTIVE DAYS OF FAVORABLE ANNOUNCEMENTS BY THE GOVT LIKE DIESEL PRICE HIKE, EXCISE DUTY CUT IN PETROL, FDI IN MULTI BRAND RETAIL & AVIATION . SO, ANY PAUSE TO GIVE A HALT TO THE 8 CONSECUTIVE DAYS OF RISE IN INDIAN MARKETS THAT MAY COME IF RBI GOVERNOR DOES NOT CUT THE CRR RATES, THEN THIS PAUSE WILL NOT ONLY ALLOW THE HARD CORE BEARS TO QUIETLY EXIT THEIR SHORTS BUT ALSO WILL OFFER A LIFE TIME OPPORTUNITY FOR THE LONG & MEDIUM TERM INVESTORS TO BOLDLY BUY THE DECLINES FOR RIDING THE MEGA BULL RUN FOR UNIMAGINABLE GAINS IN THE COMING DAYS, WEEKS AND MONTHS.
KEEPING IN MIND THE MEGA BULLISH & BOLD ANNOUNCEMENTS BY THE GOVT & WITH MUCH MORE LIKE THE DISINVESTMENT ETC IN THE PIPE LINE TO BE RELEASED SOON IF RBI FALTERS IN LOWERING THE RATES, THEN ONE MAY EXPECT NIFTY SPOT DURING THE COMING WEEK TO RISE TOWARDS 5702 TO 5740 ON THE HIGHER SIDE AND 5525 TO 5500 ON THE LOWER SIDE. A DECISIVE CROSS OVER AND CLOSE ABOVE 5630 INITIALLY WILL CATAPULT NIFTY TOWARDS THE NEXT TARGET OF 5702 FOLLOWED BY 5740 DURING THE WEEK. SIMILARLY ON THE LOWER SIDE A DECISIVE SLIDE BELOW 5540 WILL PULL NIFTY TOWARDS FRIDAYS OPENING GAP LOW OF 5530 BELOW WHICH 5500 LEVEL IS A VERY STRONG SUPPORT FOR SPOT NIFTY TO AGAIN INVITE HEAVY BUYING. OTHER THAN THE FACTOR OF 8 CONSECUTIVE DAYS OF RISE IN NIFTY, ALL THE REST OF THE FUNDAMENTAL & TECHNICAL INDICATORS POINT TOWARDS A CONTINUATION OF THE UP MOVE. EVEN IF THERE IS A PAUSE OR A MILD CORRECTION SHOULD RBI GOVERNOR PLAY THE SPOIL SPORTS, THE PAUSE OR MILD CORRECTION WILL BE VERY TEMPORARY IN NATURE. THE RECORD VOLUME DURING THE MEGA RISE ON FRIDAY IS AN EARLY INDICATION OF WHAT IS IN STORE FOR INDIAN MARKETS DURING THE COMING WEEK.
FOR INTRADAY TRADING ON MONDAY EVEN IF ASIAN MARKETS REMAIN FLAT OR WEAK, ONE CAN EXPECT INDIAN MARKETS TO OPEN HIGHER AND NIFTY SPOT MAY TRY TO MOVE UP TO BREACH FRIDAYS HIGH OF 5588 BY THE MERE STRENGTH OF SHORT COVERING DUE TO THE GOVT’S ANNOUNCEMENT OF FDI IN MULTI BRAND RETAIL AFTER THE CLOSURE OF THE MARKETS ON FRIDAY AND A FLURRY OF CONFIDENCE BUILDING MEASURES DURING THE WEEKEND. THERE COULD BE VERY HIGH VOLATILITY JUST BEFORE THE ANNOUNCEMENT BY THE RBI GOVERNOR WHICH UNDER NORMAL CIRCUMSTANCES SHOULD LOWER THE CRR BY 25 BASIS POINTS . INCASE THE MARKETS ARE FLAT TO WEAK BEFORE THE ANNOUNCEMENT THEN A MARKET FRIENDLY ANNOUNCEMENT MAKE TAKE SPOT NIFTY ABOVE THE CRITICAL LEVEL OF 5630 SPOT . IN CASE RBI GOVERNOR DRAWS BLANK THEN POSSIBILITY OF A FALL IN NIFTY CAN BE EXPECTED TO COMPENSATE A BIT AFTER 8 CONSECUTIVE DAYS OF RISE.
SPOT NIFTY HAS INITIAL SUPPORT AROUND 5555 FOLLOWED BY 5544. FURTHER WEAKNESS IN NIFTY SPOT BELOW 5544 MAY BRING IT FURTHER DOWN TOWARDS THE FRIDAYS OPENING GAP LOW OF 5530 OR TOWARDS 5522 WHERE THE BEARS MAY PREFER TO COVER THEIR SHORTS AND BULLS MAY START BUYING AGAIN . A FAILURE BY SPOT NIFTY TO AGAIN RISE TO SUSTAIN ABOVE THE GAP LOW OF 5530 ON ANY DAY CAN SEE FURTHER FALL IN SPOT NIFTY TOWARDS 5522 OR EVEN TOWARDS THE PSYCHOLOGICAL LEVELS OF 5500 FROM WHERE THE BULLS ARE LIKELY TO RETURN WITH FULL FORCE TO AGAIN TRY AND MOVE UP TOWARDS 5630 THE CRITICAL RESISTANCE THEY HAVE TO SUSTAIN ABOVE IN ORDER TO AIM HIGH.
SIMILARLY ON THE HIGHER SIDE, SPOT NIFTY HAS INITIAL RESISTANCE AROUND FRIDAYS HIGHS OF 5588 FOLLOWED BY 5599 & THEN 5610. SUSTAINING ABOVE 5610 TO 5620 SPOT CAN EASILY TAKE SPOT NIFTY TOWARDS THE CRITICAL RESISTANCE OF 5630. IN CASE BULLS CAN MANAGE TO HOLD NIFTY SPOT ABOVE 5630 FOR A FEW MINUTES THEN THERE IS EVERY POSSIBILITY THAT THE LAST LEG OF SHORT COVERING BY THE HARD CORE BEARS CAN PROPEL SPOT NIFTY TOWARDS 5656 FOLLOWED BY 5686 OR EVEN 5702 IN NEXT 1 OR TWO DAYS.
Source: Queens Trade.
THE FIRST TIME SINCE THE WEEK ENDING 1ST OCTOBER 2010. THE OUTWARD EXTENDING OF THE WEEKLY BOLLINGER BAND IS A MEGA BULLISH SIGNAL FOR MANY MORE WEEKS TO COME AND A DAILY CLOSE ABOVE THE NEAREST SWING HIGH REACHED ON 22ND FEB AT 5630 WILL SEE ACCELERATED UP MOVE FOR SPOT NIFTY AS PART OF THE MONSTER 3RD SUB WAVE OF THE 3RD MAJOR UP WAVE THAT WILL EASILY MAKE NEW LIFE TIME HIGHS ABOVE THE 8TH JANUARY 2008 HIGH OF 6357.
AT THE PRESENT CONDITION THE INDICATORS IN THE MONTHLY CHARTS LOOK MEGA BULLISH AND PRESENTLY NIFTY TRADING AROUND 5575 IS MUCH HIGHER THAN THE MONTHLY DUO OF 20 AND 34 MONTHLY AVERAGES AROUND 5350 SPOT. THE MONTHLY STOCH IS LOOKING MEGA BULLISH AND THE MONTHLY MACD IS ALSO ON THE VERGE OF FORMING A MACD HOOK WHICH TILT THE BALANCE HEAVILY IN FAVOR OF THE BULLS SUGGESTING TO BUY EVERY DECLINE FOR GREAT GAINS. A DECISIVE CLOSE OF SPOT NIFTY ABOVE THE 1ST SUB WAVE HIGH OF THE 3RD UP WAVE AT 5630 WILL PULVERIZE THE BALANCE OF THE BEARS WHO WILL HAVE NO OTHER ALTERNATIVE THAN TO COVER THEIR REMAINING SHORTS TO GET CONVERTED BEFRIEND THE EXISTING BULLS TO RIDE THE MARKETS FOR A NEW LIFE TIME HIGH.
To view charts click here http://liveglobalmarket.blogspot.in/2012/09/nifty-spot-6-months-chart-from-20-feb.html
THE WEEKLY CHARTS ALSO CONTINUE TO LOOK HIGHLY BULLISH WITH NIFTY HAVING BREACHED THE MAJOR RESISTANCE LINE COMING FROM DEWALI 5TH NOV 2010 HIGH OF 6338 AND A WEEKLY CLOSE MUCH ABOVE THE RESISTANCE LINE THROUGH A MONSTROUS GREEN CANDLE PIERCING OUT OF THE WEEKLY BOLLINGER BAND ENABLING THE WEEKLY BOLLINGER BANDS TO EXTEND OUTWARDS SHOULD SEE MANY MORE WEEKS OF UP MOVE TOWARDS THE NEXT RESISTANCE LINE JOINING THE DOUBLE HEAD HIGHS OF 8TH JAN 2008 AROUND 6357 AND 5TH NOV 2010 HIGHS OF 6338 WHICH IS NOW AROUND 6300 SPOT NIFTY LEVELS. THE FALL FROM 5630 TILL 4770 WAS IN A ‘ABC’ ZIGZAG PATTERN & THE CLOSURE OF SPOT NIFTY AROUND 5575 ABOVE THE ‘B’ HIGH OF 5499 TO CLOSE HIGH ABOVE IT WILL EASILY CATAPULT NIFTY TO BREACH THE 22ND FEB HIGH OF 5630 TOWARDS THE MAJOR RESISTANCE AROUND 6300 SPOT NIFTY LEVELS IN NEXT FEW WEEKS.
THE DAILY CHARTS LOOK HIGHLY BULLISH EVEN THOUGH SOME OF THE DAILY INDICATORS ARE CAMPING WITHIN THE OVERBOUGHT LEVELS. THE INVERTED HEAD & SOLDER FORMATION AS CAN BE SEEN IN THE DAILY CHART ABOVE HAS THE NEAR TERM TARGET AT 5950 WHICH IS 600 POINT FROM THE SECOND TIME BREAKOUT POINT OF 5350 EQUAL TO THE 600 POINT FROM THE LOW F THE INVERTED HEAD AT 4770 TO THE POINT IN THE NECK LINE AROUND 5370 VERTICALLY ABOVE THE INVERTED HEAD. THE HIGH OF THE UPWARDS LOOKING RECTANGULAR CHANNEL WHICH ALSO IS AROUND 5630 NOW MAY POSE SOME RESISTANCE IN CASE THE RBI GOVERNOR FALTERS IN CUTTING CRR RATES THAT MAY SEE A TEMPORARY HALT TO THE 8 CONSECUTIVE DAYS OF UP MOVE AFTER WEDNESDAY 5TH SEPTEMBER LOW OF 5215 SPOT .
IN CASE RBI GOVERNOR IS CONCERNED ABOUT THE NATIONAL GROWTH AND INDUSTRY AND CUTS THE RATES BY EVEN 25 BASIS POINTS THEN NIFTY SPOT MAY TAKE ANOTHER 100 POINT JUMP IN SECONDS ONLY TO EYE FOR THE 5702 TO 5740 SPOT NIFTY LEVELS THAT WILL BE THE CUMULATIVE EFFECT OF THE CONSECUTIVE DAYS OF FAVORABLE ANNOUNCEMENTS BY THE GOVT LIKE DIESEL PRICE HIKE, EXCISE DUTY CUT IN PETROL, FDI IN MULTI BRAND RETAIL & AVIATION . SO, ANY PAUSE TO GIVE A HALT TO THE 8 CONSECUTIVE DAYS OF RISE IN INDIAN MARKETS THAT MAY COME IF RBI GOVERNOR DOES NOT CUT THE CRR RATES, THEN THIS PAUSE WILL NOT ONLY ALLOW THE HARD CORE BEARS TO QUIETLY EXIT THEIR SHORTS BUT ALSO WILL OFFER A LIFE TIME OPPORTUNITY FOR THE LONG & MEDIUM TERM INVESTORS TO BOLDLY BUY THE DECLINES FOR RIDING THE MEGA BULL RUN FOR UNIMAGINABLE GAINS IN THE COMING DAYS, WEEKS AND MONTHS.
KEEPING IN MIND THE MEGA BULLISH & BOLD ANNOUNCEMENTS BY THE GOVT & WITH MUCH MORE LIKE THE DISINVESTMENT ETC IN THE PIPE LINE TO BE RELEASED SOON IF RBI FALTERS IN LOWERING THE RATES, THEN ONE MAY EXPECT NIFTY SPOT DURING THE COMING WEEK TO RISE TOWARDS 5702 TO 5740 ON THE HIGHER SIDE AND 5525 TO 5500 ON THE LOWER SIDE. A DECISIVE CROSS OVER AND CLOSE ABOVE 5630 INITIALLY WILL CATAPULT NIFTY TOWARDS THE NEXT TARGET OF 5702 FOLLOWED BY 5740 DURING THE WEEK. SIMILARLY ON THE LOWER SIDE A DECISIVE SLIDE BELOW 5540 WILL PULL NIFTY TOWARDS FRIDAYS OPENING GAP LOW OF 5530 BELOW WHICH 5500 LEVEL IS A VERY STRONG SUPPORT FOR SPOT NIFTY TO AGAIN INVITE HEAVY BUYING. OTHER THAN THE FACTOR OF 8 CONSECUTIVE DAYS OF RISE IN NIFTY, ALL THE REST OF THE FUNDAMENTAL & TECHNICAL INDICATORS POINT TOWARDS A CONTINUATION OF THE UP MOVE. EVEN IF THERE IS A PAUSE OR A MILD CORRECTION SHOULD RBI GOVERNOR PLAY THE SPOIL SPORTS, THE PAUSE OR MILD CORRECTION WILL BE VERY TEMPORARY IN NATURE. THE RECORD VOLUME DURING THE MEGA RISE ON FRIDAY IS AN EARLY INDICATION OF WHAT IS IN STORE FOR INDIAN MARKETS DURING THE COMING WEEK.
FOR INTRADAY TRADING ON MONDAY EVEN IF ASIAN MARKETS REMAIN FLAT OR WEAK, ONE CAN EXPECT INDIAN MARKETS TO OPEN HIGHER AND NIFTY SPOT MAY TRY TO MOVE UP TO BREACH FRIDAYS HIGH OF 5588 BY THE MERE STRENGTH OF SHORT COVERING DUE TO THE GOVT’S ANNOUNCEMENT OF FDI IN MULTI BRAND RETAIL AFTER THE CLOSURE OF THE MARKETS ON FRIDAY AND A FLURRY OF CONFIDENCE BUILDING MEASURES DURING THE WEEKEND. THERE COULD BE VERY HIGH VOLATILITY JUST BEFORE THE ANNOUNCEMENT BY THE RBI GOVERNOR WHICH UNDER NORMAL CIRCUMSTANCES SHOULD LOWER THE CRR BY 25 BASIS POINTS . INCASE THE MARKETS ARE FLAT TO WEAK BEFORE THE ANNOUNCEMENT THEN A MARKET FRIENDLY ANNOUNCEMENT MAKE TAKE SPOT NIFTY ABOVE THE CRITICAL LEVEL OF 5630 SPOT . IN CASE RBI GOVERNOR DRAWS BLANK THEN POSSIBILITY OF A FALL IN NIFTY CAN BE EXPECTED TO COMPENSATE A BIT AFTER 8 CONSECUTIVE DAYS OF RISE.
SPOT NIFTY HAS INITIAL SUPPORT AROUND 5555 FOLLOWED BY 5544. FURTHER WEAKNESS IN NIFTY SPOT BELOW 5544 MAY BRING IT FURTHER DOWN TOWARDS THE FRIDAYS OPENING GAP LOW OF 5530 OR TOWARDS 5522 WHERE THE BEARS MAY PREFER TO COVER THEIR SHORTS AND BULLS MAY START BUYING AGAIN . A FAILURE BY SPOT NIFTY TO AGAIN RISE TO SUSTAIN ABOVE THE GAP LOW OF 5530 ON ANY DAY CAN SEE FURTHER FALL IN SPOT NIFTY TOWARDS 5522 OR EVEN TOWARDS THE PSYCHOLOGICAL LEVELS OF 5500 FROM WHERE THE BULLS ARE LIKELY TO RETURN WITH FULL FORCE TO AGAIN TRY AND MOVE UP TOWARDS 5630 THE CRITICAL RESISTANCE THEY HAVE TO SUSTAIN ABOVE IN ORDER TO AIM HIGH.
SIMILARLY ON THE HIGHER SIDE, SPOT NIFTY HAS INITIAL RESISTANCE AROUND FRIDAYS HIGHS OF 5588 FOLLOWED BY 5599 & THEN 5610. SUSTAINING ABOVE 5610 TO 5620 SPOT CAN EASILY TAKE SPOT NIFTY TOWARDS THE CRITICAL RESISTANCE OF 5630. IN CASE BULLS CAN MANAGE TO HOLD NIFTY SPOT ABOVE 5630 FOR A FEW MINUTES THEN THERE IS EVERY POSSIBILITY THAT THE LAST LEG OF SHORT COVERING BY THE HARD CORE BEARS CAN PROPEL SPOT NIFTY TOWARDS 5656 FOLLOWED BY 5686 OR EVEN 5702 IN NEXT 1 OR TWO DAYS.
Source: Queens Trade.
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