NIFTY SPOT CONTINUED WITH ITS DOWNWARD SLIDE FOR THE 5TH CONSECUTIVE DAY & BE SURE IT WILL BE KEPT SUBDUED FOR SOME MORE DAYS TILL THE TIME MOST OF THE MARKET PARTICIPANTS START TO THINK THAT THE BULLISHNESS THAT LED TO DIWALI HIGH OF 6341 WAS A BIG TRAP & THEN TURN OUT TO BE ENTIRELY BEARISH ON INDIAN MARKETS. AS WAS INDICATED FOR MONDAY SPOT NIFTY MADE A LOW OF 6068 AFTER BREACHING THE CRITICAL 6080 BUT WAS MADE TO CLOSE AROUND 6079 AS A PERFECT EXAMPLE OF INDEX MANAGEMENT. HOWEVER NIFTY STILL LOOKS WEAK AS LONG AS IT REMAINS BELOW 6288 AND WILL INVITE MONSTROUS SHORTING ON EVERY BIG INTRADAY RISE TOWARDS THE PREVIOUS DAYS HIGHS.
FOR INTRADAY TRADING ON MONDAY, SPOT NIFTY HAS INITIAL RESISTANCE AROUND 6110 AND A FAILURE TO BREACH AND MORE IMPORTANTLY A FAILURE TO SUSTAIN ABOVE 6110 WILL SEE POWER SHORTS RESUMING. HOWEVER IF SPOT NIFTY SUSTAINS ABOVE 6110 TO 6116 THEN EXPECT INITIAL BOUT OF SHORT COVERING TO PROPEL IT TOWARDS 6126 FOLLOWED BY 6145 TO 6150 LEVELS . A BREACH TO SUSTAIN ABOVE 6126 TO 6130 WILL SEE THE 2ND BOUT OF SHORT COVERING BY THE WEAKER HANDS TO PUSH NIFTY TOWARDS 6145 TO 6150. SUSTAINING ABOVE 6162 SPOT MAY SEE MUCH HIGHER LEVELS AS BULLISH MOMENTUM IS LIKELY RESUME AT LEAST TEMPORARILY.
SIMILARLY ON THE LOWER SIDE, A BREACH OF MONDAY’S LOW OF 6068 SPOT WILL SEE BULLS RUNNING AWAY THAT MAY PULL DOWN NIFTY SPOT INITIALLY TOWARDS 6055. SUSTAINING BELOW 6055 TO 6050 ZONE TO HAVE A CANDLE CLOSE BELOW IT MAY SEND SHOCK WAVES FOR THE REMAINING BULLS THAT MAY SEE SPOT NIFTY QUICKLY SLIDING TOWARDS 6040 FOLLOWED BY THE CRITICAL LOW OF 6033 TO STRAIGHT DIVE TOWARDS 6020 TO 6015 ZONE. THE AREA AROUND 6020 IS THE AREA OF 50% RETRACEMENT FROM 1ST OCTOBER LOW OF 5701 TILL DIWALI HIGH OF 6341. AROUND 6020 ALSO REMAINS THE CRITICAL 50 DAY EMA THAT SHOULD SEE A SPRING ACTION BOUNCE WHICH INTRADAY BULLS MAY TAKE FULL ADVANTAGE OF.
FOR INTRADAY TRADING ON MONDAY, SPOT NIFTY HAS INITIAL RESISTANCE AROUND 6110 AND A FAILURE TO BREACH AND MORE IMPORTANTLY A FAILURE TO SUSTAIN ABOVE 6110 WILL SEE POWER SHORTS RESUMING. HOWEVER IF SPOT NIFTY SUSTAINS ABOVE 6110 TO 6116 THEN EXPECT INITIAL BOUT OF SHORT COVERING TO PROPEL IT TOWARDS 6126 FOLLOWED BY 6145 TO 6150 LEVELS . A BREACH TO SUSTAIN ABOVE 6126 TO 6130 WILL SEE THE 2ND BOUT OF SHORT COVERING BY THE WEAKER HANDS TO PUSH NIFTY TOWARDS 6145 TO 6150. SUSTAINING ABOVE 6162 SPOT MAY SEE MUCH HIGHER LEVELS AS BULLISH MOMENTUM IS LIKELY RESUME AT LEAST TEMPORARILY.
SIMILARLY ON THE LOWER SIDE, A BREACH OF MONDAY’S LOW OF 6068 SPOT WILL SEE BULLS RUNNING AWAY THAT MAY PULL DOWN NIFTY SPOT INITIALLY TOWARDS 6055. SUSTAINING BELOW 6055 TO 6050 ZONE TO HAVE A CANDLE CLOSE BELOW IT MAY SEND SHOCK WAVES FOR THE REMAINING BULLS THAT MAY SEE SPOT NIFTY QUICKLY SLIDING TOWARDS 6040 FOLLOWED BY THE CRITICAL LOW OF 6033 TO STRAIGHT DIVE TOWARDS 6020 TO 6015 ZONE. THE AREA AROUND 6020 IS THE AREA OF 50% RETRACEMENT FROM 1ST OCTOBER LOW OF 5701 TILL DIWALI HIGH OF 6341. AROUND 6020 ALSO REMAINS THE CRITICAL 50 DAY EMA THAT SHOULD SEE A SPRING ACTION BOUNCE WHICH INTRADAY BULLS MAY TAKE FULL ADVANTAGE OF.
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