MARKETS FOR WEEK ENDING 26TH OCTOBER

SO, FOR THE COMING WEEK BATTLE LINES ARE DRAWN BETWEEN THE BULLS AND THE BEARS  WITHIN THE SPOT NIFTY ZONE OF 5722 AND FUTURE ZONE OF 5757 ON THE HIGHER SIDE AND 5633 SPOT & 5636 FUTURE ON THE LOWER SIDE. A BREACH OF NIFTY ON THE LOWER SIDE CAN BE BOLDLY SHORTED FOR MUCH LOWER LEVELS AS IN THAT CASE NIFTY MAY FALL TO TAKE SUPPORT ON THE MAJOR SUPPORT LINE COMING FROM THE LOWS OF 4TH JUNE AS CAN BE SEEN IN THE CHART ABOVE. DURING MONTH OF SEPTEMBER, SPOT NIFTY HAD MADE A LOW OF  5215 AND A HIGH OF 5735. DURING THIS MONTH OF OCTOBER NIFTY SPOT HAS ALREADY BREACHED SEPTEMBER MONTH HIGH OF 5735 TO MOVE UP TILL 5815. HENCE THERE IS EVERY POSSIBILITY THAT OPERATORS WILL PULL NIFTY FURTHER DOWN  DURING THE REST OF OCTOBER TO COMPENSATE A LITTLE MORE OF THE NIFTY LEVELS  FROM THE LOWS OF SEPTEMBER SO THAT THE OPERATORS CAN WEED OUT WEAKER HANDS AND TAKE SUITABLE LONG POSITIONS FOR THE NOVEMBER MONTH.

SO, BOLDLY SHORT & ONLY SHORT IN CASE SPOT NIFTY SLIPS & MORE IMPORTANTLY SUSTAINS BELOW 5633 AND BOLDLY GO LONG IF BY CHANCE DURING THE REMAINING DAYS OF OCTOBER MONTH NIFTY SPOT MANAGES TO BREACH 5723 TO SUSTAIN ABOVE IT. THE WEEKLY PERFECT DOJI  & 7TH NRB MADE BY NIFTY WITH LOW OF 5633 AND HIGH OF 5723 WILL PLAY A MAJOR ROLE IN DECIDING WHICH WAY NIFTY SPOT WILL MOVE BASED ON THE BREACH & MORE IMPORTANTLY SUSTAINING ABOVE 5723 FOR THE UP SIDE OF 5633 FOR THE DOWN SIDE. WITH THE TRUNCATED WEEK COMING , THERE IS MORE LIKELY-HOOD OF A REPEAT OF RANGE BOUND CONDITION OF LAST WEEK WITH A NEGATIVE BIAS. WITH DOW OPERATORS PLAYING MERRY HELL WITH THE REST OF WORLD MARKETS BY SUITABLY MANIPULATING DOW & ITS FUTURES, THE CHANCES OF A DOWN SIDE BREACH IS MORE LIKELY TO WEED OUT WEAKER HANDS BEFORE THE MEGA BULL RUN RESUMES.

AS CAN BE SEEN IN THE DAILY CHART NIFTY HAS INITIAL SUPPORT AROUND THE FIRST CHANNEL LOWS OF AROUND 5636 TO 5630. THE BREACH OF THIS INITIAL CHANNEL LOWS CAN SEE NIFTY FALLING LIKE A STONE TOWARDS THE LOWER CHANNEL LOWS AROUND 5500 TO 5475  SPOT LEVELS AFTER SOME DELAY  AROUND THE 50 DAY EMA AROUND 5530 SPOT. PRESENTLY 20 DAY EMA AROUND 5656 SPOT LOOKS PERFORATED TO ALLOW THE BEARS TO PIERCE THROUGH IT AND IF  THE BULLS ARE DETERMINED NOT TO GIVE AN INCH BELOW 5630 SPOT LEVELS THEN THE BULLS CAN PUSH BACK THE BEARS THROUGH THE SAME PERFORATED 20 DAY EMA TO MOVE UP TOWARDS 5722 SPOT AGAIN TO MARCH UP TOWARDS THE OCTOBER HIGHS OF 5815 SPOT.