MARKETS FOR 7TH SEPTEMBER

NIFTY ON THURSDAY MADE A LOW OF 5218 JUST ABOVE THE WEDNESDAY’S LOW OF 5215 AND ALSO MADE A HIGHER HIGH AT 5261 & ALSO A HIGHER CLOSING AT 5240 ABOVE WEDNESDAY’S CLOSING OF 5226 SPOT. THIS HIGHER LOW, HIGHER HIGH AND THE HIGHER CLOSING ON THE AUSPICIOUS THURSDAY WAS PERHAPS THE INITIAL INDICATION OF WHAT IS IN STORE FOR NEXT FEW DAYS .THE ENDING OF ECB THAT HAS BROUGHT GREAT CHEERS FOR EUROPEAN MARKETS & DOW WILL HAVE
A HIGHLY BULLISH IMPACT ON ASIAN MARKETS AND MOST OF THE ASIAN MARKETS WHICH HAD  REMAINED SUBDUED FOR MANY MANY DAYS MAY SHOW A VERY GOOD BOUNCE FOR NEXT FEW DAYS. INDIAN MARKETS TOO WHICH HAD REMAINED SUBDUED FOR THE LAST TWO WEEKS AFTER MAKING THE 23RD  AUGUST HIGH OF 5449 TILL 5TH SEPT LOW OF 5215 &  WILL SHOW A SUBSTANTIAL BOUNCE IN NEXT FEW DAYS TO TRY AND CROSS THE AUGUST MONTH HIGH OF 5449 DURING THE MONTH OF SEPTEMBER.

Click here to view Nifty Chart http://liveglobalmarket.blogspot.in/2012/09/nifty-spot-6-months-chart-from-20-feb.html

LAST WEEK NIFTY SPOT HAD CLOSED AT 5258 AFTER MAKING A WEEKLY HIGH OF 5399 AND LOW OF 5238. SO ON FRIDAY 7TH SEPTEMBER, ALTHOUGH IT WILL NOT AT ALL BE POSSIBLE FOR SPOT NIFTY TO BREACH LAST WEEKS HIGH OF 5399, YET IT WILL MAKE THE BASE FOR CROSSING THE LAST WEEKS HIGH OF 5399 TO MOVE UP TO TEST AND EVEN BREACH THE AUGUST MONTH HIGH OF 5449 NEXT WEEK.. THE FACT THAT SPOT NIFTY AFTER BREACHING THE 50% SUPPORT LEVEL OF 5240 DID NOT BREACH OR TEST THE CRITICAL FIBO 61.8%  LEVEL OF 5191 & HAS FORMED A BASE AROUND THE TWIN LOWS OF WEDNESDAY & THURSDAY AND IS THE GO AHEAD SIGNAL FOR THE BULLS TO BUY & ONLY BUY.

AFTER THE LIKELY TO BOUNCE AFTER MAKING THE WEDNESDAY’S LOW OF 5215 AND THURSDAY’S LOW OF 5218 FROM THE UPWARD LOOKING CHANNEL LOWS AS CAN BE SEEN IN THE CHART ABOVE, ONE SHOULD BE REASONABLY SURE THAT NIFTY WILL MOVE UP TOWARDS THE UPPER CHANNEL AND THE EXPECTED CORRECTION IS CERTAINLY OVER. EVERY INTRADAY DECLINE OR THE FRIDAY NIGHT’S LIKELY FALL IN DOW TO TRAP ASIAN BULLS ON MONDAY MORNING, MAY BE FULLY USED TO GO LONG & MORE AND MORE LONGS BE BOLDLY ADDED ON EVERY DECLINE AS LONG AS SPOT NIFTY SUSTAINS ABOVE THE BASE FORMED AROUND 5215 FOR MUCH HIGHER LEVELS DURING THE MONTH OF SEPTEMBER.

FOR FRIDAY’S INTRADAY TRADING PURPOSE THERE IS EVERY POSSIBILITY OF A MASSIVE GAP UP OPENING & ONE SHOULD NOT BE SURPRISED TO SEE NIFTY SPOT OPENING ABOVE WEDNESDAY & THURSDAY’S TWIN HIGHS OF 5261 LEVELS TO INCH UP TOWARDS THE 5300 LEVELS. AFTER OPENING GAP UP, IT MAY BE PULLED DOWN A BIT FOR ALLOWING BIG PLAYERS TO ENTER LONG IN THE MARKETS AGAIN, WHICH MUST BE FULLY UTILIZED TO GO LONG ONLY. THE LOWS OF 5215 - 5218 FORMED ON WEDNESDAY & THURSDAY AROUND THE CHANNEL LOWS IS A STRONG BASE TO ACT AS A STOP LOSS FOR THE MONTH OF SEPTEMBER TO  PROPEL NIFTY TOWARDS THE UPPER CHANNEL NOW AROUND 5600 AS CAN BE SEEN IN THE CHART ABOVE. SO, GO LONG ONLY, ON EVERY DECLINE EVEN THOUGH DOW AFTER THE BIG RISE OF THURSDAY WILL BE PULLED DOWN ON FRIDAY NIGHT BY DOW OPERATORS ON SOME PLANTED ADVERSE ECONOMIC DATA THERE TO DELIVER A KNOCK OUT PUNCH TO ASIAN MARKETS ON MONDAY MORNING LIKE ITS AS USUAL QUOTA OF MISERY FOR ASIAN MARKETS.

STOCKS OF METALS, INFRA & BANKING SECTORS  WHICH HAD FALLEN MISERABLY DURING THE RECENT CORRECTION WILL BE THE SHARPEST MOVERS DURING THE COMING DAYS & A PAUSE OR INTRADAY CORRECTION IN THESE MAY BE FULLY USED TO BUY THESE FOR GREAT GAINS IN SEPTEMBER. ALL THOSE WHO HAVE NOT YET INITIATED LONG POSITIONS MAY WAIT FOR AN INTRADAY CORRECTION ON FRIDAY OR A DOW OPERATORS’  INDUCED FALL ON MONDAY TO GO LONG BY HAVING A STOP LOSS BELOW THE RECENT SWING LOW OF 5215 OR BELOW FIBO 61.8% LEVEL OF 5191 SPOT FOR GREAT GAINS TOWARDS 23RD AUGUST HIGHS OF 5449 FOLLOWED BY THE 14TH MARCH HIGHS OF 5499 & POSSIBLY 22ND FEBRUARY HIGH OF 5630 IN NEXT FEW  WEEKS. INDIAN MARKETS HAD BEEN KEPT SUBDUED FOR MANY MANY DAYS AND TIME HAS COME FOR A MEGA BLAST OFF AS PART OF THE RESUMPTION OF THE MEGA 3RD UP WAVE TOWARDS MUCH HIGHER LEVELS.

FOR INTRADAY TRADING OF FUTURES ON FRIDAY, LEVELS ARE NOT IMPORTANT AND ONE MUST TRADE LONG ON EVERY INTRADAY DECLINE IS MORE IMPORTANT. HAVE A REASONABLE STOP LOSS AND TRADE LONG ON EVERY INTRADAY DECLINE BY TRAILING THE STOP LOSS UPWARDS. HAVE A LONG STOP LOSS BELOW WEDNESDAY’S LOWS AND FROM NOW ONWARDS JUST THINK OF TRADING LONG  ONLY  TILL ONE IS STOPPED OUT. ALSO BE CAUTIOUS AS SOME TRADING TERMINALS MAY NOT WORK IN THE MORNING  NOT TO ALLOW ITS CLIENTS TO MAKE GAINS AS THE GAINS OF THE CLIENTS WILL BE POCKETED BY THE TERMINAL OWNERS AND THE TERMINALS WILL BE MADE FUNCTIONAL AFTER 30 TO 40 MINUTES. EVEN  THE CLIENTS WILL NOT BE ABLE TO GIVE ORDERS WHICH IS A COMMON PRACTICE WITH SOME FRAUDULENT TRADING T TERMINALS ON BIG MOVE DAYS.


Source: QueensTrade