MARKETS FOR MONDAY 17TH JUNE

NIFTY SPOT MOST LIKELY HAS COMPLETED ITS DOWNWARD RETRACEMENT WHEN IT MADE A LOW OF 5683 ON THURSDAY 13TH JUNE. ALTHOUGH THE 4TH SUB SUB WAVE FLAT IN THE FORM OF 3,3,5 SHOULD HAVE RETESTED THE 10TH APRIL LOW OF 5477 SPOT,  BUT THE ISLAND GAP REVERSAL  FORMATION  IN 3 DAYS OF 12,13 & 14 JUNE TOGETHER WITH THE 7TH NRB CANDLE OF 13TH JUNE CLOSING BELOW THE 200 DAY EMA  FOLLOWED BY  THE  BULLISH CANDLE OF 14TH JUNE  FORMING THE ISLAND GAP REVERSAL  & CLOSING ABOVE BOTH THE RED NRB CANDLES OF 12TH & 13TH JUNE THAT TOO FAR ABOVE THE 200 DAY EMA ARE THE EARLY INDICATIONS OF STRONG REVERSAL EVEN THOUGH NIFTY SPOT NEEDS TO DECISIVELY CLOSE ABOVE 5981 IN NEXT FEW DAYS TO CONFIRM THAT THE DOWNWARD CORRECTION IS OVER.

FOR INTRADAY TRADING ON MONDAY 17TH JUNE, NIFTY FUTURE NEEDS TO DECISIVELY BREACH & SHOULD HAVE AT LEAST A 15 MINUTE CANDLE CLOSE ABOVE 5844 TO SIGNAL HEAVY SHORT COVERING ALTHOUGH SUSTAINING ABOVE THE FUTURE LEVELS OF 5825 SHOULD TRIGGER THE INITIAL BOUT OF SHORT COVERING. SUSTAINING ABOVE THE FUTURE LEVELS OF 5844 CAN PROPEL NIFTY FUTURES  TOWARDS 5863 FOLLOWED BY 5875 TO EYE FOR THE 5900 FUTURE LEVELS. HOWEVER A FAILURE TO BREACH AND SUSTAIN ABOVE 5825 OR 5844 CAN EMPOWER THE BEARS TO START SHORTING AGAIN  TO SEE LOWER LEVELS OF 5785, 5777 OR 5772. SUSTAINING BELOW THE FUTURE LEVELS OF 5772 MAY SEE NIFTY FUTURE FALLING TOWARDS 5757 FOLLOWED BY 5740 THAT MAY SUMMON THE WAITING BULLS TO COME FORWARD AND SAVE NIFTY FUTURES FROM FALLING FURTHER INTO THE FRIDAY’S OPENING GAP BELOW 5740 FUTURE LEVELS.