MARKETS FOR 18TH SEPTEMBER

NIFTY AS EXPECTED OPENED WITH A BIG GAP UP AND IN THE OPENING SECONDS ONLY REACHED THE DAY HIGH OF 5650 SPOT LEVELS MUCH HIGHER THAN THE CRITICAL SWING HIGH OF 5630. HOWEVER AFTER THE OPENING MINUTES NIFTY FAILED TO BREACH THE OPENING HIGH OF 5650 AND FELL TO MAKE AN INTRADAY LOW OF 5585 MUCH BELOW THE OPENING GAP LOW OF 5636. THREE MORE ATTEMPTS WERE MADE BY SPOT NIFTY TO BREACH THE CRITICAL RESISTANCE OF 5630 BUT IT FAILED ALL THE TIMES TO FINALLY CLOSE THE DAY AROUND 5610. NOW, SHOULD SPOT NIFTY FAIL TO BREACH THE CRITICAL 5630 & MORE IMPORTANTLY IF IT FAILS TO
CLOSE ABOVE IT THEN THERE IS EVERY POSSIBILITY OF A WELL DESERVED PAUSE OR MILD CORRECTION THAT WILL ENCOURAGE BOTH THE BULLS & THE BEARS TO BOLDLY SHORT THE MARKETS AND CLOSE THE EYES AND SIT TIGHT WITH THE SHORTS AS LONG AS SPOT NIFTY CONTINUES TO CLOSE BELOW THE CRITICAL SWING HIGH OF 5630.

NIFTY AFTER THE BULLISH CLOSE OF MONDAY HAS MADE 9 DAYS OF CONSECUTIVE BULLISH CLOSINGS & WITH THE MARKETS BEING CLOSED ON WEDNESDAY 19TH SEPT DUE TO GANESH POOJA HOLIDAY, THERE IS EVERY POSSIBILITY OF A BOUT OF SOLID PROFIT BOOKING BY THE WEAKER BULLS ON EVERY INTRADAY RISE TOWARDS 5630 TO 5640 SPOT LEVELS. THERE IS ALSO A POSSIBILITY OF THE CONFIRMATION OF AN  EVENING STAR FORMATION IN CASE NIFTY OPENS WITH A BIG GAP DOWN ON TUESDAY TO CLOSE BELOW THE FRIDAYS CLOSING OF 5577 SPOT. IN VIEW OF THIS, ALTHOUGH THE UNDERTONE OF THE MARKETS ARE EXTREMELY BULLISH AND EVERY BIG FALL IS GOING TO BE BOUGHT INTO BY BIG PLAYERS, YET ONE NEEDS TO OBSERVE CERTAIN CAUTION  IN CASE SPOT NIFTY FAILS TO CLOSE ABOVE 5630.

FOR INTRADAY TRADING ON TUESDAY ONE MAY PLAN TO TRADE SHORT IN CASE SPOT NIFTY FAILS TO BREACH THE CRITICAL LEVEL OF 5630  BY HAVING A STOP LOSS ABOVE IT. SHOULD SPOT NIFTY FAIL TO HOLD MONDAYS LOWS OF 5585 THEN ALSO ONE MAY TRADE SHORT FOR QUICK GAINS. FURTHER SHORT POSITIONS MAY BE ADDED IN CASE SPOT NIFTY BREACHES THE CRITICAL SUPPORT ZONE OF 5575 TO 5570 IN WHICH CASE ONE MAY SEE LOWER LEVELS TOWARDS FRIDAYS OPENING GAP LOWS OF 5530 IN NEXT ONE OR TWO TRADING DAYS. SIMILARLY ON THE HIGHER SIDE IN CASE SPOT NIFTY MANAGES TO BREACH AND SUSTAIN ABOVE 5630 THEN ONE WILL OBSERVE SOME SHORT COVERING TO MILDLY PUSH NIFTY TOWARDS 5640 TO 5645 CRITICAL ZONE. SUSTAINING ABOVE THE SPOT NIFTY’S CRITICAL ZONE OF 5640 TO 5645 CAN PUSH NIFTY FURTHER UP ABOVE MONDAYS HIGHS OF 5650 TOWARDS 5660 OR HIGHER LEVELS.