MARKETS FOR 3RD APRIL

NIFTY CONTINUED WITH ITS  EXPECTED BULLISH MOMENTUM BUT THE RISE WAS NOT AS SPECTACULAR AS WAS EXPECTED. NIFTY SPOT COULD MAKE A DAY HIGH OF 5331 AND CLOSED AT 5322 HIGHER THAN THE HIGH OF FRIDAY WHICH TECHNICALLY IS A BULLISH INDICATION  FOR TUESDAY. WHAT IS MORE IMPORTANT IS THAT THE PRICE ACTION OF MONDAY WAS A 7^TH NRB CANDLE AROUND THE DAILY PIVOT. TECHNICALLY A DECISIVE BREACH OF THE HIGH OF THE 7^TH NRB AT 5331 CAN SEE A SHARP UP MOVE & IN CASE THERE IS A GAP UP OPENING ON TUESDAY THEN ONE CAN SEE MASSIVE SHORT COVERING TO PROPEL NIFTY TOWARDS MUCH HIGHER LEVELS IN SPITE OF THE FACT THAT THE CURRENT WEEK WILL END ON WEDNESDAY WITH HOLIDAYS ON THURSDAY & FRIDAY FOLLOWED BY SATURDAY & SUNDAY.

FOR INTRADAY TRADING ON TUESDAY, THE OPENING  WILL BE INFLUENCED BY EXTERNAL MARKETS. AS EVERYTHING IS LOOKING BULLISH FOR INDIAN MARKETS NOW, ONE SHOULD NOT BE SURPRISED TO FIND INDIAN MARKETS ARE SUPPRESSED ON TUESDAY  WHERE AS REST OF THE ASIAN MARKETS  ARE MADE TO MOVE UP. IN ANY CASE THE BULLISH INDICATIONS GENERATED BY INDIAN MARKETS AFTER 5 CONSECUTIVE WEEKS OF FALLS HAS TO TAKE EFFECT AND  VERY STRONG UP MOVE FOR INDIAN MARKET IS JUST WAITING TO BLAST OFF. INDIAN MARKETS HAVE BEEN THE WORST PERFORMERS COMPARED TO MOST OF THE ASIAN AND OTHER BRICKS MARKETS IN MARCH & THE SOLE REASON FOR IT IS THE GOOD NEWS IS WILLFULLY SUPPRESSED AND VERY MINOR BAD ONES  OR HIGHLY INSIGNIFICANT NEWS IS BLOWN OUT OF PROPORTION TO GENERATE PANIC IN INDIAN MARKETS. TILL SUCH TIME OUR OWN FINANCIAL CHANNELS CONTINUE WITH THIS NASTY HABIT FOR THEIR OWN PERSONAL GAINS, NO GENUINE INDIAN INVESTOR WILL BE ABLE TO MAKE MONEY IN INDIAN MARKETS.

IF ONE HAS A CLOSER LOOK AT THE DAILY EOD CHART OF SPOT NIFTY ABOVE, ONE WILL NOTICE THAT THE CRITICAL INDICATOR SLOW STOCH  AFTER HAVING BOTTOMED OUT HAS TURNED AROUND AND HAS JUST JOTTED OUT OF THE OVERSOLD ZONE SUGGESTING MUCH MORE UP MOVE IN STORE FOR NIFTY. THE +VE BULLISH DIVERGENCE IN STOCH CONFIRMS THIS VIEW THAT ENCOURAGES  INTRADAY TRADERS  TO BOLDLY BUY THE INTRADAY DECLINES GENERATED BY ADVERSE NEWS EVENTS DURING THE DAY. SIMILAR +VE DIVERGENCE IN MACD ALSO WILL PUSH NIFTY TO MUCH HIGHER LEVELS AS CAN BE SEEN IN THE CHART ABOVE. THE RESISTANCE LINE JOINING SWING HIGHS OF 5630, 5499 WILL ENCOUNTER NIFTY AROUND THE SPOT LEVEL OF 5383 TO 5390 LEVELS. A DECISIVE BREACH AND SUSTAINING ABOVE THE RESISTANCE LINE WILL SEE NIFTY  SHOOTING UP LIKE A MISSILE TOWARDS NEXT SWING HIGHS OF 5499 AND 5630 DURING THE MARKET FRIENDLY MONTH OF APRIL.

THE MONSTROUS RED CANDLE OF 22^ND MARCH HAS FORMED A 3 IN 1 OUTSIDE BAR AND A 1 IN 1 INSIDE BAR SET UP WITH HIGHS  OF THE MOTHER CANDLE AROUND 5386. A BREACH OF THIS HIGH AT 5386 WHICH FALLS AROUND THE RESISTANCE LINE COMING FROM 5630 & 5499 WILL SEE NIFTY SPOT EVEN SHOOTING PAST THESE TWO SWING HIGHS IN APRIL IT SELF. THE BREACH OF THE RESISTANCE LINE WHICH ALSO IS THE UPPER SIDE OF THE RECTANGLE AS WELL AS THE 2^ND WAVE BULLISH FLAG AS CAN BE SEEN IN THE CHART ABOVE WILL CONFIRM THAT THE MONSTER 3^RD UP WAVE HAS STARTED FROM THE MARCH EXPIRY DAY LOW OF 5136 . LAST WEEK NIFTY HAD FALLEN & BREACHED EACH OF THE 20, 34, 50 & 200 EMAS AND ALSO THE 200 DMA. FROM FRIDAY NIFTY’S METEORIC RISE HAS TAKEN IT ABOVE EACH OF THESE CRITICAL MOVING AVERAGES  THAT SHOWS THE HIDDEN STRENGTH IN NIFTY TO EVEN SURPASS THE 22^ND FEB SWING HIGH OF 5630 IN QUICK TIME IN APRIL AS INITIAL PART OF THE MEGA 3^RD UP WAVE.

FOR INTRADAY TRADING PURPOSE, NIFTY FUTURE FINDS INITIAL RESISTANCE AROUND 5373 & VISUALIZING THE BULLISHNESS GENERATED BY THE IMPORTANT INDICATORS, ONE SHOULD NOT BE SURPRISED TO SEE NIFTY FUTURES BREACHING THE MONDAYS HIGH OF 5372 BY A GAP UP OPENING ONLY. THE SUPPRESSED FORCE THAT KEPT NIFTY COMPRESSED LIKE A COILED SPRING FOR FIVE CONSECUTIVE WEEKS MAY SEE THE ENTIRE COIL ENERGY BEING RELEASED TO QUICKLY PROPEL NIFTY TOWARDS MUCH HIGHER LEVELS. A DECISIVE BREACH AND SUSTAINING ABOVE CRITICAL ZONE OF 5388 TO 5396  MAY SEE NIFTY FUTURE BEING PROPELLED TOWARDS THE HIGHER ORBITS OF 5404, 5420, 5434 & EVEN 5454 LEVELS. SUPPORT FOR  NIFTY FUTURES MAY BE FOUND AROUND 5343 BELOW WHICH A STONE LIKE FALL MAY BE SEEN TOWARDS 5323 & 5310. INTRADAY TRADERS MAY LOOK FOR AN INTRADAY DECLINE TO BUY FOR QUICK GAINS. FAILURE TO SUSTAIN ABOVE  LEVELS OF 5388 TO 5396  FUTURE ZONE AND THEN FALLING TO BREACH 5343  WILL FAVOR SHORTERS TO SHORT BELOW 5343 AND MORE SHORTS BE ADDED BELOW FUTURE LEVELS OF 5323 IF AT ALL NIFTY FUTURE FALLS TOWARDS THE LEVELS OF 5343 OR 5323.