MARKETS FOR MONDAY 1ST JULY

NIFTY SPOT HAD THE EXPECTED MONSTROUS RISE ON FRIDAY AND AFTER OPENING GAP UP ABOVE THE  INITIAL RESISTANCE LINE, IT WENT TO MAKE A HIGH OF 5853 AND CLOSED AT 5842 AROUND THE DAILY PIVOT. THE SHORT SQUEEZE ACTION OF FRIDAY SAW NIFTY CATAPULTED ABOVE THE 20 & THE 200 DAY EMA IN ONE GO AND TOUCHED THE 50 DAY EMA AROUND 5850. AS CAN BE SEEN IN THE DAILY CHART OF SPOT NIFTY  ABOVE, NIFTY IS NEAR THE NEXT RESISTANCE OF 5868 WHICH IS FORMED BY THE RESISTANCE LINE COMING FROM 20 MAY TOP OF 6229 & 30 MAY HIGH OF 6133. THIS RESISTANCE LINE IS JUST ABOVE THE 11 JUNE HIGH OF 5868 & 18TH JUNE HIGH OF 5863. A DECISIVE BREACH OF 5863 TO 5868 SPOT ZONE  WILL WITNESS ANOTHER BOUT OF MASSIVE SHORT COVERING THAT MAY PROPEL SPOT NIFTY TOWARDS THE NEXT CRITICAL RESISTANCE OF 5975 WHICH IS THE 61.8% RETRACEMENT LEVEL COUNTED FROM 20 MAY SWING HIGH OF 6229 & 26TH JUNE SWING LOW OF 5566. ONE CAN  OBSERVE  FIERCE BATTLE BETWEEN THE BULLS & THE BEARS AROUND THESE TWO RESISTANCES OF 5868 & 5975 & LIKE  IT ALWAYS HAPPENS,  THE BULLS CERTAINLY WILL EMERGE AS THE WINNERS DURING THIS MARKET FRIENDLY MONTH OF JULY.

TECHNICALLY, IF ONE OBSERVES THE DAILY INDICATORS THEN ONE WILL FIND THAT A LOT OF FURTHER UP MOVE IS IN STORE FOR NIFTY. EXPIRY DAY DECISIVE BREACH AND CLOSE AT 5682 ABOVE THE 26TH JUNE PERFECT DOJI  & IN SIDE BAR SETUP’S MOTHER CANDLE HIGH OF 5666 WAS THE INITIAL TRIGGER FOR THE SHARP UP MOVE OF FRIDAY AFTER A BIG GAP UP ABOVE THE INITIAL RESISTANCE LINE. WITH THE SLOW STOCHASTIC GENERATING DEFINITE INDICATIONS OF FURTHER UP MOVE ALONG WITH THE +VE DIVERGENCE IN DAILY MACD HISTOGRAM . THE FORMATION OF A HOOK BY 20 DAY EMA  ON TOUCHING  THE 200 DAY EMA ADDS STRENGTH TO THE DAILY CHARTS FOR FURTHER UP MOVE. ALTHOUGH THERE MAY BE SMALL CORRECTIONS TO WEED OUT WEAKER HANDS BUT THESE CORRECTIONS ARE THE

MARKETS FOR FRIDAY 28TH JUNE

BEING END OF THE WEEK, END OF THE MONTH, GENERALLY PANIC WILL BE GENERATED TO WEED OUT WEAKER HANDS.   SO, ONE SHOULD LOOK FOR INTRADAY DECLINES TO ENTER LONG AS THE EXPIRY DAY CLOSURE OF NIFTY SPOT AT 5682 ABOVE THE 25TH JUNE PERFECT DOJI HIGH OF 5666  IS  TECHNICALLY A HIGHLY BULLISH SIGNAL. A CLOSURE OF SPOT NIFTY ABOVE 5700 WHICH IS ABOVE THE RESISTANCE LINE COMING FROM  30 MAY HIGH OF 6133 &  JOINING 18TH JUNE HIGH OF 5863 SPOT, SHOULD SEE NIFTY EYEING FOR THE 20 JUNE OPENING GAP HIGH OF 5755 FOLLOWED BY THE 200 DAY SMA AROUND 5825 SPOT IN NEXT FEW DAYS.  ALTHOUGH,  CORRECTIONS WILL BE THERE AFTER EVERY RISE,  BUT THESE CORRECTIONS  MUST BE USED TO BUY ONLY FOR GOOD GAINS DURING THE MONTH OF JULY.

FOR INTRADAY TRADING ON FRIDAY, SPOT NIFTY BREACHING & MORE IMPORTANTLY SUSTAINING ABOVE 5710 CAN PROPEL IT TOWARDS 20 JUNE GAP HIGH OF 5755. INABILITY OF SPOT NIFTY TO BREACH THIS GAP HIGH  CAN BE USED TO TRADE SHORT BY HAVING STOP LOSS ABOVE IT. SIMILARLY ON THE LOWER SIDE SPOT NIFTY SLIDING BELOW THE CRITICAL ZONE OF 5672 TO 5668 CAN ALSO SEE A STONE LIKE FALL TOWARDS MUCH LOWER LEVELS WHICH ALSO CAN BE USED TO TRADE SHORT. IN CASE OF  A BIG GAP UP, THE HIGHER ZONE OF 5747 TO 5755 IS CRITICAL FOR THE BULLS TO SUCCESSFULLY NEGOTIATE THE ZONE IN ORDER TO MOVE UP DURING EARLY DAYS OF JULY.

MARKETS FOR WEDNESDAY 27TH JUNE

BEING EXPIRY DAY, NO TRADE IS THE BEST TRADE. HOWEVER IF ONE IS ITCHING TO TRADE ON THE EXPIRY DAY,  THEN ONE SHOULD TRADE THE MARKETS  THROUGH “AT THE MONEY CALLS & PUTS OF JUNE SERIES” &  SHOULD NOT TRADE IN NIFTY FUTURES, AS THE CALLS & PUTS WHICH ARE AT THE MONEY ARE LIKELY TO MOVE SIMILAR TO THE FUTURE BUT WITH VERY VERY LESS MARGIN MONEY  REQUIRED TO TRADE THESE OPTIONS COMPARED TO NIFTY FUTURES.

 IT IS GOOD TO SEE NIFTY BEING PULLED DOWN DURING THE REMAINING 2 DAYS OF JUNE TO GENERATE ENOUGH UP SIDE SPACE FOR THE COMING MARKET FRIENDLY MONTH OF JULY TO TAKE NIFTY UPWARDS.

MARKETS FOR WEDNESDAY 26TH JUNE

NIFTY SPOT  AFTER SO MANY DAYS MADE A HIGHER LOW, HIGHER HIGH & A HIGHER CLOSING ON TUESDAY.  IRRESPECTIVE OF THE SMALL DIFFERENCE BETWEEN THE LEVELS OF MONDAY & TUESDAY, THE PRICE ACTION OF TUESDAY MAY BE THE EARLY INDICATION OF END TO THE DOWN SIDE CORRECTION . HOWEVER IN CASE MONDAY’S LOW OF 5566 IS BREACHED THEN ONE MAY AGAIN INDULGE IN RUTHLESS SHORTING TO SEE 10TH APRIL LOW OF 5477 BEING RETESTED BEFORE THE RESUMPTION OF MEGA BULL RUN.

 FOR WEDNESDAY’S TRADING ALTHOUGH IT MAY BE TOUGH FOR SPOT NIFTY TO BREACH TUESDAY’S HIGH OF 5666 DECISIVELY TO CLOSE ABOVE IT  YET, SHOULD SPOT NIFTY BREACH 5666 AND CLOSE ABOVE IT THEN ONE MAY SEE MASSIVE SHORT COVERING TO PROPEL SPOT NIFTY TOWARDS MUCH HIGHER LEVELS OF 5686, 5707 FOLLOWED BY 20TH JUNE OPENING GAP HIGH OF 5753 SPOT LEVELS. ONE MAY BOLDLY BUY IN CASE NIFTY FALLS BELOW 5600 INITIALLY TOWARDS TUESDAY’S LOW OF 5570 OR SELL IN CASE SPOT NIFTY MOVES TOWARDS  5675 TO 5685 ZONE BY HAVING SUITABLE STOP LOSSES. SUPPORT FOR SPOT NIFTY COMES AROUND 5598 INITIALLY FOLLOWED BY 5584 & THEN THE DANGEROUS 5570 TO 5565 SPOT ZONE BELOW WHICH BULLS MAY GET BUTCHERED FOR MUCH LOWER LEVELS.

MARKETS FOR TUESDAY 25TH JUNE

NIFTY SPOT IS SLOWLY INCHING TOWARDS THE GIVEN LEVEL OF 5477 TO BREACH THAT LEVEL TO TRIGGER STOP LOSSES AND GENERATE SOME PANIC & AFTER THE WEAKER HANDS ARE FORCED TO EXIT NIFTY WILL BE TAKEN UP. SO IT IS WISER TO USE INTRADAY RISE TO BOLDLY TRADE SHORT. SO, AS LONG AS SPOT NIFTY CONTINUES TO SUSTAIN BELOW MONDAY 24TH JUNE OPENING GAP HIGH OF 5638 & DOES NOT CLOSE A 30 MINUTE CANDLE ABOVE IT, THEN EVERY INTRADAY RISE TOWARDS 5638 CAN BE SHORTED FOR GOOD INTRADAY GAINS BY HAVING A STOP LOSS ABOVE IT.

FOR TRADING OF NIFTY FUTURES ON TUESDAY 25TH JUNE, EXPECT ANOTHER GAP DOWN OPENING INDUCED BY OVERNIGHT WEAK MARKETS & SHIVERING ASIAN MARKETS IN THE MORNING.  NIFTY FUTURE FINDS INITIAL SUPPORT AROUND 5575, BELOW WHICH MONDAY’S LOW OF 5556 IS A CERTAINTY.  EVEN A GAP DOWN OPEN MAY SMASH BOTH THESE SUPPORTS.   BELOW MONDAY’S LOWS OF 5556 FUTURE LEVELS, ONE MAY EXPECT 5530 FOLLOWED BY 5515 & EVEN 5490 FUTURE LEVELS  TO HAVE A CLOSER PEEP AT THE 10 APRIL LOWS OF 5477 SPOT NIFTY LEVELS.  HOWEVER, EXPECT A GOOD BOUNCE IN CASE 5500 LEVEL IS HELD  OR IN CASE NIFTY  FUTURES BREACHES AND SUSTAINS ABOVE 5626 FOR A SHARP BOUNCE.

MARKETS FOR MONDAY 24TH JUNE

ON FRIDAY 21ST JUNE NIFTY SPOT  HAD CLOSED THE WEEK AROUND 5667 AFTER MAKING A DAY HIGH OF 5686 & LOW OF 5624… THESE LEVELS ARE LOWEST LEVELS FOR BOTH THE MONTHS OF MAY & JUNE THIS YEAR.   ALTHOUGH AT THE WORST CASE NIFTY SPOT MAY FALL TILL  10TH APRIL LOW OF 5477 TO COMPLETE THE 4TH SUB SUB WAVE FLAT (AS HAD BEEN EXPLAINED IN ELLIOTT WAVE BELOW EARLIER) BEFORE RESUMING THE UP MOVE  ( IT COULD  BE SLIGHTLY ABOVE IT  TO BOUNCE UP AFTER DISAPPOINTING THE WAITING BUYERS OR MAY BREACH 5477 TO TRIGGER STOP LOSSES), YET THE FACT THAT NIFTY SPOT ON FRIDAY 21ST JUNE  HAS BOUNCED UP AFTER TESTING THE SUPPORT LINE AROUND THE DAY LOW OF 5624 ( THE SUPPORT LINE COMING FROM  26TH JULY 2012 LOWS OF 5032 & JOINING 10TH APRIL 2013 LOWS OF 5477), THERE IS EVERY POSSIBILITY THAT AFTER  A RETEST OF THIS SUPPORT LINE NIFTY SPOT MAY BOUNCE UP AGAIN..

 A DECISIVE BREACH OF THIS SUPPORT LINE AROUND 5616 TO 5624 SPOT BY HAVING A DAY OR TWO OF DAILY CLOSE BELOW IT,  WILL SEE THE BULLS BEING WHIPPED LEFT & RIGHT  BY THE CHASING BEARS  TO BE SHUNTED AWAY TOWARDS 5555 INITIALLY FOLLOWED BY THE EXPECTED LOW OF 5477 SPOT LEVELS BEFORE THE BEARS CALL IT ENOUGH IS ENOUGH  FOR HE RESUMPTION OF THE MEGA BULL RUN. THE WEEK  AS

MARKETS FOR WEDNESDAY 19TH JUNE

NIFTY FUTURES CLOSED AROUND 5810 AFTER MAKING A DAY LOW OF 5800 TOWARDS THE END OF  THE TRADING ON TUESDAY. FOR WEDNESDAY’S INTRADAY TRADING PURPOSE, NIFTY FUTURES FINDS THE CRITICAL SUPPORT AROUND TUESDAY’S LOWS OF 5800 . IF AFTER THE INITIAL  ERRATIC INITIAL OPENING MINUTES, IN CASE NIFTY FUTURE SLIDES  BELOW 5800 THEN ONE MAY EXPECT A STONE LIKE FALL,  MORE SO IF AFTER MAKING AN UPWARD RETRACEMENT IF IT FALLS BELOW 5800 FOR THE SECOND TIME THEN BIGGER FALLS MAY BE EXPECTED. IF THIS HAPPENS THEN ONE MAY TRADE SHORT TO SEE TARGETS OF 5785 FOLLOWED BY 5775 & THEN 5755 TO 5750 FUTURE LEVELS THAT MAY SUMMON THE BULLS FOR THE RESCUE ACT FROM HERE ONWARDS THAT MAY PULL NIFTY UP TOWARDS THE CRITICAL 5800 AGAIN.

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.