MARKETS FOR 27TH MARCH

THE WAY NIFTY WAS MADE TO FALL ON MONDAY IS A CLEAR INDICATION THAT THE COMING EXPIRY ON THURSDAY FOR NIFTY WILL BE MADE TO OCCUR AT MUCH LOWER LEVELS THAN THE EXPECTED 5400 . THE BUDGET ANNOUNCEMENT WAS ON 16^TH MARCH AND TO SAY THAT THE FALL ON MONDAY IS DUE TO SOME CONTENTS OF BUDGET ON FIIS  ENTERING THROUGH MAURITIUS  IS JUST HOGWASH & MAKING MOUNTAINS OUT OF MOLE HILLS. NIFTY HAD TO BE PULLED DOWN BEFORE THE EXPIRY  & IT IS JUST AS SIMPLE AS THAT. WHEN MOST  THINK THAT THE MARKETS WILL MOVE UP THEN  BE SURE IT WILL BE PULLED DOWN & WHEN MOST THINK THAT THE MARKETS WILL FALL THEN IT WILL BE TAKEN UP. ONE SHOULD BE ABSOLUTELY SURE OF THIS MODERN MARKET TECHNIQUE.

FOR TUESDAYS TRADING ONE SHOULD EXPECT SOME UPWARD RETRACEMENT BOUNCE IN CASE THE CRITICAL SPOT NIFTY LEVEL OF 5171  IS NOT DECISIVELY BREACHED. THE VERY FACT THAT SPOT NIFTY HAS BREACHED THE PSYCHOLOGICAL LEVEL OF 5200 TO CLOSE BELOW IT AT 5184 IT BECOMES HIGHLY VULNERABLE TO PLANTED NEWS ANNOUNCEMENTS AND ONE MUST BUY PUTS AFTER THE RETRACEMENT RISE OF NIFTY SPOT TO BENEFIT OUT OF THE LIKELY SUDDEN SLIDE IN NIFTY ON ANOTHER EXAGGERATED PLANTED NEWS TO FOLLOW ANOTHER RISE  SIMILAR TO THE FRIDAYS RISE THAT WAS FOLLOWED BY THE PLANTED STORY ON MONDAY.

TECHNICALLY THE MARKETS LOOK HIGHLY OVERSOLD AND ARE READY FOR A GOOD BOUNCE. HOWEVER THIS TIME SUSTAINING ABOVE THE 50 DMA LEVEL OF SPOT 5300 LOOKS HIGHLY UNLIKELY. A DAILY CLOSE ABOVE THE 50 DMA AROUND 5300 WILL BRING SOME STRENGTH FOR SPOT NIFTY ABOVE WHICH 20 DMA AROUND 5320 ALSO WILL TRY TO THROW ITS WEIGHT ON NIFTY. HOWEVER ONE MUST BE REASONABLE SURE TO SEE APRIL MONTH  WILL BRING GOOD GAINS FOR THE BULLS, AS PRESENTLY MARCH MONTH LEVEL IS MUCH MUCH LOWER THAN THE FEBRUARY MONTH HIGH OF 5630 AND  ALSO BELOW THE FEBRUARY MONTH CLOSING OF 5385 SPOT. ANY FALL IF AT ALL DURING THE REMAINING DAYS OF MARCH BROUGHT DOWN BY PLANTED STORIES MAY BE USED TO BY APRIL 5400 OR HIGHER CALLS FOR GOOD GAINS DURING THE MONTH OF APRIL.

FOR TUESDAYS INTRADAY TRADING PURPOSE , SPOT NIFTY SPOT & FUTURES FINDS INITIAL SUPPORT AROUND MONDAYS LOWS OF 5171 OR  AT THE CRITICAL LOW OF 5171 BELOW WHICH ONE MAY EXPECT A STONE LIKE FALL TOWARDS 5145 FOLLOWED BY 5115 TO BE AT THE STRIKING DISTANCE FROM THE 50% RETRACEMENT LEVEL OF 5080 IN NEXT ONE OR TWO DAYS. HOWEVER IN CASE BULLS MANAGE TO STALL THE EFFECT OF THE PLANTED NEWS & PREVENT NIFTY SLIDING BELOW 5171 THEN ONE MAY EXPECT A GOOD DOUBLE BOTTOM FORMATION AROUND 5175 & 5171 LEVELS TO SEE NIFTY MOVING UP TOWARDS MUCH HIGHER LEVELS. NIFTY FUTURE NEEDS TO SUSTAIN ABOVE 5266 TO 5270 IN ORDER TO MOVE UP TOWARDS 5300 OR HIGHER LEVELS. SUSTAINING ABOVE 5300 TO 5320 THAT IS ABOVE BOTH 50 & 20 DMA WILL SEE MUCH SHARPER MOVE UPWARDS ALTHOUGH IT LOOKS VERY TOUGH AT OF NOW. SLOPPING RESISTANCE LINE AROUND 5330 TO 5333 WILL ACT AS A CHINA WALL OF NIFTY.

SOME EARLY CLARITY BY THE GOVT ON THE PLANTED  & OVER EXAGGERATED NEWS ON FIIS TAX CASE ONLY CAN SEE INDIAN MARKETS MOVING UP OR ELSE  BREACH OF 5171 TO TEST 5080 IS A CERTAINTY IN MARCH BEFORE THE REAL BOUNCE TAKES EFFECT.