MARKETS FOR 22ND MARCH

NIFTY’S RISE ON WEDNESDAY ALTHOUGH WAS  ANTICIPATED FROM  THE AFTERNOON, YET THE SHARP BOUNCE FROM AROUND 9.35 A.M. WAS A BIG SURPRISE & IT SEEMS MOON IN THE SIGN OF AQUARIUS 20 DEGREES &  ENTERING  THE AUSPICIOUS CONSTELLATION OF JUPITER  DID NOT HAVE TO WAIT TILL EXPECTED 12.24 P.M. TO DELIVER THE BULLISH BOUNTIES. AFTER FALLING SLIGHTLY  TILL SPOT LEVEL OF 5256, INDUCED BY THE OVERNIGHT NEGATIVE DOW--FOLLOWING ASIAN MARKETS, NIFTY KEPT ON MOVING UP & UP AS IF IT IS  IN A HURRY TO FIRSTLY TEST THE  BUDGET DAY HIGH OF 5445 FOLLOWED BY THE FEBRUARY MONTH HIGH OF 5630. IN FACT HAVING TESTED THE FEBRUARY MONTH LOW OF 5159 ON 7^TH MARCH BY GOING AS NEAR AS 5171,  NIFTY SPOT IS NOW  ALL SET TO TEST THE FEBRUARY MONTH HIGH OF 5630 & ONE SHOULD NOT BE SURPRISED TO SEE THIS HAPPENING ON THE LAST TRADING DAY OF MARCH OR EARLY APRIL.

AS CAN BE SEEN IN THE CHART OF SPOT NIFTY ABOVE, ON TUESDAY NIFTY HAD MADE A 2B BOTTOM AND THE SHARP UP MOVE ON WEDNESDAY SUGGESTS THAT IT WAS NOT ONLY THE  2B BOTTOM AT THE LOW OF SPOT 5234  BUT WAS ALSO A DRAGON SET UP FOR MUCH HIGHER LEVELS. THE HOURLY STOCHASTIC ON TUESDAY  AS WAS MENTIONED HAD FORMED A ROCK BOTTOM & A SHARP BOUNCE WAS VERY MUCH ON THE CARDS BUT THE WAY IT BOUNCED UP FROM EARLY IN THE MORNING WAS A BIG SURPRISE. AS CAN BE SEEN IN THE CHART ABOVE THE MONSTER  30 MINUTE RED CANDLE FORMED ON MONDAY 19^TH MARCH AT 9.30 A.M. HAD FORMED A 4 IN 1 INSIDE BAR SET UP WITH HIGH AROUND 5340. THE BREACH OF THIS HIGH OF THE MOTHER CANDLE  CAN SEE MUCH FURTHER UP MOVE THAT ENCOURAGES INTRADAY TRADERS TO BUY THE LIKELY DECLINE THAT MAY BE ANTICIPATED ON THURSDAY  TO TRAP THE BULLS WHO BOUGHT AND CARRIED THE LONGS AT THE HIGHEST POINT ON WEDNESDAY. MARKETS LOOK EXTREMELY BULLISH AND A DOW OR ASIAN INDUCED FALL IS A BUYING OPPORTUNITY TO SEE MUCH HIGHER LEVELS DURING THE REMAINING DAYS OF MARCH.

ANOTHER CLOSER LOOK AT THE CHART WILL DEPICT THAT  NIFTY SPOT HAS JUST BREACHED THE NECK LINE OF THE CUP & HANDLE FORMATION. ALTHOUGH THE BREACH OF THE NECK LINE AROUND 5363 BY THE LAST 30 MINUTE BULLISH CANDLE IS NOT A CONFIRMED BREAK OUT & MAY SEE A DECLINE TO SHAKE OUT THE WEAKER HANDS, YET IT LOOKS CERTAIN THAT THIS NECK LINE WILL BE BREACHED FOR SURE TO SEE ANOTHER 150 TO 160 POINT RISE TOWARDS 5500+ SPOT NIFTY LEVELS. IN THE  4 HOURLY TIME FRAME CHART OF BOTH SPOT & FUTURE NIFTY, THE SLOW STOCH 15,3,3 AFTER GETTING INTO THE OVERSOLD ZONE HAS BOUNCED OUT OF THE OVERSOLD ZONE WHICH IS A MEGA BULLISH SIGNAL FOR NEXT FEW DAYS THAT ALSO WILL ENCOURAGE  EVEN THE HARD CORE BEARS  TO QUIT THEIR PRESERVED SHORTS ON EVERY SMALL INTRADAY DECLINE.

A DOW OR WEAK ASIA INDUCED INITIAL SLIDE IN INDIAN MARKETS MAY BE CONSIDERED AS A GOD SENT OPPORTUNITY FOR THE BEARS TO QUIT THEIR SHORTS TO QUIETLY JOIN THE BULLS IN TAKING NIFTY HIGHER INITIALLY TOWARDS THE BUDGET DAY HIGH OF 5445 SPOT FOLLOWED BY 5500 THIS WEEK ITSELF. HENCE FORTH ANY DOW INDUCED OPENING FALL MAY TURN OUT TO BE A BONANZA FOR THE BULLS TO ENTER IN A BIG WAY. HOWEVER ONE MUST BE QUITE REASONABLE  IN HIS  ASSESSMENT OF THE MARKETS AND A SLIDE ON THURSDAY AFTER THE MEGA RISE OF WEDNESDAY IS QUITE NATURAL TO HAVE THE TAILS OF SOME BULLS CHOPPED OFF WHO BOUGHT DURING THE CLOSING MINUTES OF WEDNESDAY. HOWEVER A DECLINE ON THURSDAY IS A GREAT BUYING OPPORTUNITY AS LONG AS THE INTRADAY SUPPORT LINE AROUND SPOT 5343 TO 5340 HOLDS.

FOR THURSDAY’S INTRADAY TRADING PURPOSE, MARKETS LOOK HIGHLY BULLISH AND A DECLINE TOWARDS 5340 SPOT IS A BUY AND FURTHER DECLINES IF ANY COMES TOWARDS 5330 TO 5320, ONE CAN BUY ONLY  AS A  VERY STRONG SUPPORT REMAINS AROUND THE MAGIC SPOT NIFTY LEVEL OF 5313. THE LOWER BASE OF THE UPWARD RECTANGLE HAS A STRONG SUPPORT AROUND 5340 TO 5330  THAT MAY BE THE STOP LOSS FOR THE LONGS. SIMILARLY ON THE HIGHER SIDE A BREACH OF WEDNESDAYS HIGH OF 5373 SPOT OR 5406 FUTURE MAY SEE RESUMPTION OF THE UP MOVE AND SUSTAINING ABOVE THE FUTURE LEVEL OF 5434 CAN SEE ACCELERATED UP MOVE TOWARDS  5445, 5456 OR EVEN 5470 FUTURE LEVELS BY THE MERE STRENGTH OF SHORT COVERING ON SUCCESSFUL NEGOTIATION OF  EACH OF THESE FUTURE LEVELS. SOME STOCKS IN THE SECTORS OF  BANKING, INFRA, POWER EQUIPMENT, AUTO , OIL & GAS & TECH  WHICH WERE BROUGHT DOWN ON PLANTED STORIES &  DOWNGRADING BY FRAUDULENT FOREIGN RATING AGENCIES MAY BE QUIETLY ACCUMULATED FOR GREAT GAINS SHORTLY.