WEEKLY ANALYSIS FOR WEEK ENDING 9TH MAY

AS WAS INDICATED IN THE WEEKLY ANALYSIS OF LAST WEEK, NIFTY CONTINUED TO SLIDE ON ALL THE TRADING  DAYS DURING THE WEEK ENDING 2ND MAY &  CAN  REMAIN RANGE BOUND DURING THE COMING WEEK WITH ONLY INTRADAY RISE & FALLS. STARTING FROM THE BEARISH ENGULFING CANDLE OF FRIDAY 25TH APRIL, NIFTY FELL CONSECUTIVELY FOR FIVE DAYS IN A ROW & ON THURSDAY 30 APRIL IT FELL SO TREACHEROUSLY THAT IT MADE A LOW OF 6657 VERY NEAR TO THE MOST CRITICAL LEVEL OF 6650 A BREACH OF WHICH ON ANY DAY CAN EASILY REMOVE THE WEAKER BULLS FROM THE MARKETS & A CLOSE BELOW THE  7TH APRIL PERFECT DOJI LOW OF 6650 WILL EVEN FORCE THE HARD CORE BULLS NOT ONLY EXIT  A LARGE PORTION OF THEIR WELL PRESERVED MODI BRAND  LONGS BUT ALSO  WILL FORCE THEM TO JOIN HANDS WITH THE HEFTY BEARS. HOWEVER AS LONG AS SPOT NIFTY DOES NOT DECISIVELY BREACH THE CRITICAL LEVEL OF 6650 TO CLOSE  FAR BELOW IT,
NIFTY HAS ALL THE POTENTIAL TO RISE AGAIN TO MAKE NEW AFTER NEW LIFE TIME HIGHS FAR ABOVE THE 25TH APRIL BEARISH ENGULFING HIGH OF 6869 SPOT(ALTHOUGH SOFT PENETRATION OF 6650 MAY  BE TRIED BY MANIPULATORS TO TRIGGER STOP LOSSES OF WEAKER HANDS  TO RISE AGAIN AFTER MILDLY  PENETRATING 6650)


IN THE DAILY CHARTS OF SPOT NIFTY (PURPOSEFULLY THE DAILY CHART FOR LAST 3 WEEKS HAVE NOT BEEN ALTERED) THE UPWARD LEANING RESISTANCE LINE WHICH IS THE NECK LINE OF THE INVERTED HEAD & SOLDER FORMATION AS CAN BE SEEN IN THE CHART OF SPOT NIFTY ABOVE, MAY BECOME THE SUPPORT LINE FOR SPOT NIFTY WHEN IT FALLS & PRESENTLY THIS NECK LINE IS AROUND THE CRITICAL 6650 LEVELS.  ANY UNFAVORABLE ELECTION RESULT ON 16TH MAY OR EVEN AN UNFAVORABLE EXIT POLL RESULT ON 12TH  & 13TH MAY CAN SEE SHARP DECLINE  TO PENETRATE DEEP INTO THE NECK LINE TOWARDS 6433, 6433 OR EVEN MUCH LOWER LEVELS. HOWEVER A FAVORABLE EXIT POLL ANNOUNCEMENT FOLLOWED BY A TRIUMPHANT ELECTION RESULT FOR NDA ON 16TH MAY CAN  SEE SHARP MOVE TOWARDS 7200 WITHIN  A VERY FEW DAYS OF THE ELECTION RESULTS.

THE CANDLE OF 30TH APRIL FOLLOWED BY THAT OF 2ND MAY  HAVE FORMED  AN  INSIDE CANDLE SETUP WITH 30TH APRIL MOTHER CANDLE’S HIGH OF 6780 & LOW OF 6656 SPOT. A DECISIVE BREACH ON EITHER SIDE OF THIS MOTHER CANDLE’S HIGH & LOW MAY SEE A SHARP MOVE IN THE DIRECTION OF BREACH. SPOT NIFTY HAS ALREADY BREACHED THE 20 DAY EMA & HAS CLOSED BELOW IT FOR THREE CONSECUTIVE DAYS & THE NEXT LIFE LINE  BEING THE 34 DAY EMA JUST BELOW THE CRITICAL 6650 MAY PROVIDE THE NEXT CLOSING SUPPORT TO SPOT NIFTY IF IT DOES NOT WANT TO VISIT THE 50 DAY EMA AROUND 6565 SPOT.

SO, FOR THE COMING WEEK ENDING 9TH MAY THE CRITICAL LEVELS TO LOOK FOR ARE 6737 & 6780 ON THE HIGHER SIDE  & 6650 ON THE LOWER SIDE. A DECISIVE BREACH OF 6737 SPOT TO SUSTAIN ABOVE IT  WHICH IS ON THE RESISTANCE LINE COMING FROM 25TH APRIL TOP OF 6869 & JOINING 30 APRIL HIGH OF 6779, CAN SEE MASSIVE SHORT COVERING TO PROPEL SPOT NIFTY TOWARDS EACH OF THESE HIGHS & A DECISIVE BREACH OF 6650 MAY WHISTLE THE GAME OVER FOR THE BULLS.