NIFTY CONTINUED WITH THE MINI BREAK OUT GIVEN ON WEDNESDAY WITH THE MONSTER BREAKOUT ON THURSDAY AND THE TECHNICALS CLEARLY INDICATE MUCH HIGHER LEVELS FOR NIFTY BEFORE THE END OF THIS MARKET FRIENDLY MONTH OF SEPTEMBER . NIFTY SPOT HAVING BREACHED THE 23RD JULY HIGH OF 6093 AND HAVING CLOSED ABOVE IT AT 6115 FINDS NOW THE NEXT RESISTANCE AROUND THE LONG TERM RESISTANCE LINE AROUND 6206 TO 6230 SPOT ZONE AROUND WHICH ALSO REMAINS THE HIGH OF 20TH MAY 2013 AT 6229 AND ALSO THE MONTHLY PARSAR AROUND 6208. SO ANOTHER BIG GAP UP ON MONDAY OR JUST AFTER THE RBI GOVERNOR’S ANNOUNCEMENTS ON FRIDAY CAN ONLY SKIP THIS LAST CITADEL OF THE HARD CORE BEARS BEFORE REACHING AND BREACHING THE ALL TIME HIGHS OF 6338 SPOT THAT WAS REACHED ON THE DIWALI NIGHT OF 5TH NOVEMBER 2010. SO ONE NEEDS TO SEE HOW NIFTY SPOT NEGOTIATES THE CRITICAL ZONE BETWEEN 6200 TO 6230 .
FOR TRADING ON MONDAY IT IS BETTER TO WAIT FOR THE ANNOUNCEMENT OF RBI GOVERNOR BEFORE JUMPING INTO HECTIC BUYING ALTHOUGH ONE MAY HOLD ON TO THE CARRIED CALLS AND MAY ADD MORE CALLS AND SOME PUTS JUST BEFORE THE ARRIVAL OF RBI GOVERNOR. MARKETS LOOKS EXTREMELY BULLISH AND USE INTRADAY CORRECTIONS TO BUY ONLY AS LONG AS SPOT NIFTY CONTINUES TO STAY ABOVE THURSDAY’S OPENING GAP LOW OF 6047. AN ENTRY INTO THE GAP & THEN FAILING TO COME UP MAY BE THE FIRST SIGNAL TO REDUCE LONGS & ADD PUTS.
FOR TRADING ON MONDAY IT IS BETTER TO WAIT FOR THE ANNOUNCEMENT OF RBI GOVERNOR BEFORE JUMPING INTO HECTIC BUYING ALTHOUGH ONE MAY HOLD ON TO THE CARRIED CALLS AND MAY ADD MORE CALLS AND SOME PUTS JUST BEFORE THE ARRIVAL OF RBI GOVERNOR. MARKETS LOOKS EXTREMELY BULLISH AND USE INTRADAY CORRECTIONS TO BUY ONLY AS LONG AS SPOT NIFTY CONTINUES TO STAY ABOVE THURSDAY’S OPENING GAP LOW OF 6047. AN ENTRY INTO THE GAP & THEN FAILING TO COME UP MAY BE THE FIRST SIGNAL TO REDUCE LONGS & ADD PUTS.
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