MARKETS FOR 26TH MARCH

NIFTY AFTER 5 CONSECUTIVE WEEKS OF FALLS MOST LIKELY SHOULD SHOW A REASONABLE BOUNCE DURING THE EXPIRY WEEK IF ONE GOES BY THE HISTORY. TECHNICALLY ALSO THE STAGE IS  SET FOR A GOOD BOUNCE THIS WEEK THAT MAY START FROM AS EARLY AS MONDAY MORNING. THE TECHNICAL INDICATORS IN THE DAILY CHARTS ALTHOUGH ARE NOT GENERATING RESOUNDING BUY SIGNALS, YET THE INDICATORS ARE NOT LOOKING THAT DANGEROUS AS THEY LOOKED 2 DAYS BACK AFTER THE ORCHESTRATED FALL OF THURSDAY. NIFTY SPOT ON FRIDAY HAD CLOSED EXACTLY AT THE 50 DMA AROUND 5278 & HAVING BREACHED IT TO GO DOWN TILL 5205 TO BOUNCE AND CLOSE AT IT ON FRIDAY IS ANOTHER EARLY INDICATION OF NIFTY GOING UP TO CONTEST THE 20 DMA AROUND 5315 TO 5320 SPOT LEVELS.

SO, INCASE THERE IS A PAUSE IN MARKET SUPPRESSING NEWS BY THE FINANCIAL CHANNELS,  THEN ONE MAY EXPECT A REASONABLE BOUNCE ON MONDAY TO AT LEAST RETEST THE 20 DMA  AT AROUND 5313 TO 5320 WHICH ALSO IS AROUND THE 61.8% RETRACEMENT LEVEL COUNTED FROM THURSDAYS HIGH OF 5386 TO THE SAME THURSDAYS ORCHESTRATED LOW OF 5205. SUSTAINING ABOVE THE 20 DMA SPOT LEVEL OF 5320 MAY SEE THE INITIAL BOUT OF SHORT COVERING TO PROPEL NIFTY TOWARDS HIGHER LEVELS. SIMILARLY ON THE LOWER SIDE SPOT NIFTY FINDS INITIAL SUPPORT AROUND THE 5265 LEVELS BELOW WHICH ONE MAY EXPERIENCE A STONE LIKE FALL TOWARDS 5244 FOLLOWED BY 5220 TO THREATEN THE CRITICAL SUPPORT ZONE OF 5200 TO 5171.

FOR INTRADAY TRADING PURPOSE, NIFTY FUTURE FINDS INITIAL RESISTANCE AROUND THE 5326 TO 5330 LEVELS SUSTAINING ABOVE WHICH ONE MAY SEE SMOOTH RIDE TOWARDS 5343 TO 5355 FOLLOWED BY EVEN 5370 OR HIGHER LEVELS. SIMILARLY ON THE LOWER SIDE  NIFTY FUTURE FINDS INITIAL SUPPORT AROUND THE SUPPORT ZONE OF 5270 TO 5260 BELOW WHICH REPEATED BOUTS OF SALVO SHORTING MAY SEE NIFTY FUTURES SLIDING TOWARDS 5253 to 5240 BELOW WHICH FURTHER LOWER LEVELS BELOW FRIDAYS LOWS OF 5231 TOWARDS 5225 ALSO CAN BE EXPECTED. INTRADAY TRADERS MAY BUY FOR QUICK GAINS IN CASE NIFTY FUTURE CROSSES 5327 TO 5330 AND SUSTAINS ABOVE IT. SIMILARLY INTRADAY SHORTING MAY GIVE GOOD GAINS IN CASE NIFTY FUTURE SLIDES BELOW  THE 5270 TO 5265 ZONE.

IN THE HOURLY CHRT OF SPOT NIFTY ABOVE, THE SUPPORT LINE JOINING SWING LOWS OF 5077, 5177 & 5209 WILL PROVIDE A VERY STRONG SUPPORT TO SPOT NIFTY AROUND 5220 TO 5200 LEVELS BELOW WHICH RUTHLESS SHORTING SHOULD BE THE ONLY OPTION  LEFT WITH THE SHORT TERM TRADERS. THE CRITICAL INTRADAY INDICATORS SLOW STOCH AND MACD DISPLAYING +VE DIVERGENCES GENERATE THE INITIAL INDICATION OF FURTHER UP MOVE ON MONDAY OR TUESDAY. HOWEVER  FOR A GOOD SUSTAINED UP MOVE, SPOT NIFTY NEEDS TO INITIALLY BREACH AND SUSTAIN ABOVE THE  ZONE OF 5345 TO 5366 FORMED BY THE CONFLUENCE OF CRITICAL HOURLY EMAS OF 200, 89 & 55 EMAS AS CAN BE SEEN IN THE HOURLY CHART ABOVE. SUSTAINING ABOVE THIS CRITICAL EMA CONFLUENCE ZONE ABOVE 5366 SPOT CAN SEE A SHARP JUMP IN NIFTY SPOT EITHER ON MONDAY OR TUESDAY EVEN THOUGH OLD, HARASSING  & MARKET DEPRESSING NEWS MAY BE PULLED OUT OF THE CUPBOARD TO PULL NIFTY DOWN ON EACH OF ITS  ATTEMPT TO MOVE & SPECIALLY WHEN MARKETS LOOK ALMOST CERTAIN FOR A BIG JUMP. 

BUY IGL FUT ABV 372 SL 368 TGT 377-380

BUY GAIL FUT ABV 375 SL 371 TGT 380-385

BUY PETRONET FUT ABV 164 SL 162.40 TGT 167-169