NIFTY SPOT SAW ITS 5TH CONSECUTIVE WEEK OF LOWER CLOSINGS AFTER MAKING A LOW OF 5254 TO CLOSE IN THE FORM OF A WEEKLY HAMMER GIVING THE BULLS SOME SIGH OF RELIEF AT LEAST THAT THE FEARFUL DOWN SWING HAS EITHER ENDED OR ABOUT TO END. CLOSURE OF SPOT NIFTY IN THE FORM OF A WEEKLY HAMMER ABOVE THE LOWER BOLLINGER BAND, 200 WEEK SMA , 200 WEEK EMA & ALSO ABOVE THE WEEKLY SUPPORT LINE AFTER BREACHING EACH OF THESE DURING THIS SINGLE WEEK AS CAN BE SEEN IN THE WEEKLY CHART ABOVE TECHNICALLY INDICATES THAT THE DOWN SWING MIGHT BE OVER. HIGHLY OVERSOLD CONDITION OF DAILY INDICATORS AND SOME OF THE WEEKLY INDICATORS TILT THE BALANCE IN FAVOR OF THE BULLS THAT ENCOURAGES TRADERS TO BUY THE DECLINES & HOLD THE POSITIONS AS LONG AS SPOT NIFTY DOES NOT BREACH THE WEEKLY LOW OF 5254 , IN CASE IT IS BREACHED THEN ONE MAY AGAIN TURN HIGHLY BEARISH TO RUTHLESSLY SHORT THE MARKETS TO SEE SUB 5000 LEVELS.
A CLOSURE OF AN HOURLY CANDLE BELOW THE SPOT NIFTY LEVEL OF 5377 OR MORE IMPORTANTLY BELOW 5353 WILL BE THE EARLY SIGNAL FOR THE BULLS TO BE CAUTIOUS ON THEIR FRESH LONG POSITIONS & TO THE BEARS TO RESUME SHORTING AGAIN. SIMILARLY ON THE HIGHER SIDE A DECISIVE BREACH OF 5505 SPOT MAY BE THE INITIAL INDICATION THAT THE BULLS ARE GATHERING MOMENTUM TOWARDS MUCH HIGHER LEVELS ALTHOUGH THE BULLS NEED TO BREACH EACH OF THE RESISTANCE LEVELS OF 5600, 5757 TO 5775 & FINALLY CLOSE ABOVE SPOT NIFTY LEVEL OF 5808 TO CONFIDENTLY SAY THAT THE DOWN SIDE CORRECTION IS OVER TO RIDE HAPPILY DURING THE MARKET FRIENDLY MONTH OF SEPTEMBER FOR MUCH HIGHER LEVELS TOWARDS THE 23RD JULY SWING HIGH OF 6061 SPOT. A FAILURE TO BREACH ANY OF THESE RESISTANCE LEVELS WILL SEE BIG FALLS TO ENCOURAGE THE BEARS TO INDULGE IN SHORTING RAMPAGE.
IN ADDITION TO THE WEEKLY CHART ABOVE, THE DAILY CHARTS TOO LOOK PROMISING FOR THE BULLS. THE MONSTROUS BEARISH ENGULFING CANDLE OF 21ST AUGUST HAS ALMOST GOT NEUTRALIZED BY THE TWO DAYS OF BULLISH REVERSAL CANDLES SPECIALLY THE CANDLE OF 22ND AUGUST THAT WAS ALMOST A BULLISH PIERCING LINE HAVING OPENED GAP DOWN AND BREACHING THE LOW OF 21ST CANDLE, BUT TO RISE AND CLOSE ABOVE THE MID POINT OF BEARISH ENGULFING CANDLE OF 21ST AUGUST. BULLISH DIVERGENCES IN SLOW STOCHASTIC, MACD & MANY THER DAILY INDICATORS POINT TOWARDS THE CONTINUATION OF UP MOVE GENERATED ON THURSDAY 21ST AUGUST. HOWEVER EVEN AN INTRADAY SLIDE TO CLOSE AN HOURLY CANDLE OR EVEN A 30 MINUTE CANDLE BELOW EITHER OF 5377 OR BELOW 5353 SPOT MAY POINT TOWARDS MORE DECLINES AFTER THE SO CALLED DEAD CAT BOUNCE.
FOR INTRADAY TRADING OF NIFTY FUTURES ON MONDAY 26TH AUGUST, EVEN TOUGH THE TECHNICALS POINT TOWARDS MUCH HIGHER LEVELS, BUT EXPECT NIFTY TO BE PULLED DOWN INITIALLY OR AFTER A MILD RISE TO ADD TO THE BULL TRAP GENERATED ON END FRIDAY BY HAVING CLOSED NIFTY FUTURE AROUND 5464 VERY NEAR THE HIGH OF THE DAY OF 5468. INITIAL SUPPORT FOR NIFTY FUTURES MAY BE EXPECTED AROUND 5450 BELOW WHICH 5430 TO 5423 IS A CRITICAL SUPPORT ZONE TO ATTRACT THE BEARS TO PULL THE FUTURES DOWN TOWARDS 5412 FOR A FIERCE BATTLE WITH THE BULLS HERE, THAT MAY DECIDE WHETHER TO SLIDE TOWARDS SUB 5400 LEVELS TO TEST 5392 TO 5377 FOR A BOUNCE UPWARDS AFTER THIS LEVEL OR TO SLIDE DOWN FURTHER TOWARDS 5370 OR EVEN 5353 FUTURE LEVELS.
SIMILARLY ON THE HIGHER SIDE, IN CASE MARKETS FOLLOW THE RIGHT TECHNICALS (WHICH VERY RARELY HAPPENS IN INDIAN MARKETS) THEN EXPECT ANOTHER GAP UP ON MONDAY TO STRAIGHT OPEN ABOVE THE CRITICAL LEVEL OF 5488 THAT WAS THE HIGH OF 21ST AUGUST & THEN MOVE UP FURTHER TO TEST HIGHER LEVELS OF 5500, 5520 & 5550 . A GOOD GAP UP OPENING AND SUSTAINING ABOVE 5500 CAN GUIDE NIFTY FUTURES TOWARDS MUCH HIGHER LEVELS NOT ONLY BY THE FLATTERY OF SHORT COVERING BUT ALSO THROUGH GENUINE BUYING THAT CAN SET THE BASE FOR A GOOD EXPIRY CLOSING TOWARDS 5600 OR HIGHER LEVELS TO NOT ONLY BID ADIEU TO THE MARKET DROWNING MONTH OF AUGUST BUT ALSO WELCOME THE MARKET FRIENDLY MONTH OF SEPTEMBER FROM EARLY NEXT WEEK STARTING 2ND SEPTEMBER ONWARDS.
A CLOSURE OF AN HOURLY CANDLE BELOW THE SPOT NIFTY LEVEL OF 5377 OR MORE IMPORTANTLY BELOW 5353 WILL BE THE EARLY SIGNAL FOR THE BULLS TO BE CAUTIOUS ON THEIR FRESH LONG POSITIONS & TO THE BEARS TO RESUME SHORTING AGAIN. SIMILARLY ON THE HIGHER SIDE A DECISIVE BREACH OF 5505 SPOT MAY BE THE INITIAL INDICATION THAT THE BULLS ARE GATHERING MOMENTUM TOWARDS MUCH HIGHER LEVELS ALTHOUGH THE BULLS NEED TO BREACH EACH OF THE RESISTANCE LEVELS OF 5600, 5757 TO 5775 & FINALLY CLOSE ABOVE SPOT NIFTY LEVEL OF 5808 TO CONFIDENTLY SAY THAT THE DOWN SIDE CORRECTION IS OVER TO RIDE HAPPILY DURING THE MARKET FRIENDLY MONTH OF SEPTEMBER FOR MUCH HIGHER LEVELS TOWARDS THE 23RD JULY SWING HIGH OF 6061 SPOT. A FAILURE TO BREACH ANY OF THESE RESISTANCE LEVELS WILL SEE BIG FALLS TO ENCOURAGE THE BEARS TO INDULGE IN SHORTING RAMPAGE.
IN ADDITION TO THE WEEKLY CHART ABOVE, THE DAILY CHARTS TOO LOOK PROMISING FOR THE BULLS. THE MONSTROUS BEARISH ENGULFING CANDLE OF 21ST AUGUST HAS ALMOST GOT NEUTRALIZED BY THE TWO DAYS OF BULLISH REVERSAL CANDLES SPECIALLY THE CANDLE OF 22ND AUGUST THAT WAS ALMOST A BULLISH PIERCING LINE HAVING OPENED GAP DOWN AND BREACHING THE LOW OF 21ST CANDLE, BUT TO RISE AND CLOSE ABOVE THE MID POINT OF BEARISH ENGULFING CANDLE OF 21ST AUGUST. BULLISH DIVERGENCES IN SLOW STOCHASTIC, MACD & MANY THER DAILY INDICATORS POINT TOWARDS THE CONTINUATION OF UP MOVE GENERATED ON THURSDAY 21ST AUGUST. HOWEVER EVEN AN INTRADAY SLIDE TO CLOSE AN HOURLY CANDLE OR EVEN A 30 MINUTE CANDLE BELOW EITHER OF 5377 OR BELOW 5353 SPOT MAY POINT TOWARDS MORE DECLINES AFTER THE SO CALLED DEAD CAT BOUNCE.
FOR INTRADAY TRADING OF NIFTY FUTURES ON MONDAY 26TH AUGUST, EVEN TOUGH THE TECHNICALS POINT TOWARDS MUCH HIGHER LEVELS, BUT EXPECT NIFTY TO BE PULLED DOWN INITIALLY OR AFTER A MILD RISE TO ADD TO THE BULL TRAP GENERATED ON END FRIDAY BY HAVING CLOSED NIFTY FUTURE AROUND 5464 VERY NEAR THE HIGH OF THE DAY OF 5468. INITIAL SUPPORT FOR NIFTY FUTURES MAY BE EXPECTED AROUND 5450 BELOW WHICH 5430 TO 5423 IS A CRITICAL SUPPORT ZONE TO ATTRACT THE BEARS TO PULL THE FUTURES DOWN TOWARDS 5412 FOR A FIERCE BATTLE WITH THE BULLS HERE, THAT MAY DECIDE WHETHER TO SLIDE TOWARDS SUB 5400 LEVELS TO TEST 5392 TO 5377 FOR A BOUNCE UPWARDS AFTER THIS LEVEL OR TO SLIDE DOWN FURTHER TOWARDS 5370 OR EVEN 5353 FUTURE LEVELS.
SIMILARLY ON THE HIGHER SIDE, IN CASE MARKETS FOLLOW THE RIGHT TECHNICALS (WHICH VERY RARELY HAPPENS IN INDIAN MARKETS) THEN EXPECT ANOTHER GAP UP ON MONDAY TO STRAIGHT OPEN ABOVE THE CRITICAL LEVEL OF 5488 THAT WAS THE HIGH OF 21ST AUGUST & THEN MOVE UP FURTHER TO TEST HIGHER LEVELS OF 5500, 5520 & 5550 . A GOOD GAP UP OPENING AND SUSTAINING ABOVE 5500 CAN GUIDE NIFTY FUTURES TOWARDS MUCH HIGHER LEVELS NOT ONLY BY THE FLATTERY OF SHORT COVERING BUT ALSO THROUGH GENUINE BUYING THAT CAN SET THE BASE FOR A GOOD EXPIRY CLOSING TOWARDS 5600 OR HIGHER LEVELS TO NOT ONLY BID ADIEU TO THE MARKET DROWNING MONTH OF AUGUST BUT ALSO WELCOME THE MARKET FRIENDLY MONTH OF SEPTEMBER FROM EARLY NEXT WEEK STARTING 2ND SEPTEMBER ONWARDS.
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