VIEW ON NIFTY FOR COMING DAYS

 THE DOWN SWING CONTINUED UNABATED & ON THE EXPIRY DAY NIFTY BREACHED THE CRITICAL LEVEL OF  5800 TO FALL TILL 5780 TO FINALLY CLOSE AT 5800. MOST LIKELY THIS FALL EITHER WILL TERMINATE HERE AROUND THE 5800 LEVELS OR AFTER A PAUSE MAY SLIDE FURTHER DOWN TOWARDS THE 62% SUPPORT AREA OF 5727 & IF THIS DOES NOT HOLD THEN ONE CAN SURELY EXPECT THE 200 DAY EMA AROUND 5525 TO BE TESTED BY SPOT NIFTY IN NEXT FEW DAYS, EARLIEST BY END OF FIRST WEEK OF DECEMBER.

THE DOUBLE HEAD OR THE 2B REVERSAL PATTERN MADE BY NIFTY WITH THE TWIN HIGHS AROUND 6284 & 6338 & HAVING DECISIVELY BREACHED THE NECK LINE AROUND 5937 FOLLOWED BY THE BREACH OF THE CONFLUENCE OF SUPPORTS AROUND 5800 LEVELS CLEARLY INDICATES THAT NIFTY MAY SLIDE TOWARDS 5727 FOLLOWED BY 5525. HOWEVER IN CASE NIFTY BOUNCES UP FROM THE EXPIRY DAY CLOSING LEVEL OF 5800 AND MOVES UP TO CLOSE ABOVE THE LAST WEEKS CLOSING LEVEL OF 5890 OR MORE IMPORTANTLY ABOVE THE EXPIRY DAY HIGH OF 5907, THEN IT MAY ENCOURAGE THE BULLS TO PRESS ON A BIT FURTHER UP, EARLY NEXT WEEK TOWARDS WEDNESDAYS DECEPTIVE HIGH OF 5977 THAT MAY SEND EARLY SIGNALS FOR THE RESUMPTION OF THE UP MOVE.

FOR FRIDAYS TRADING, THE FACTORS THAT MAY INFLUENCE INDIAN MARKETS ARE THE REPETITION OF THE NEWS ON THE RECENT LOAN BRIBERY CASE, CONDITION OF ASIAN MARKETS AND DOW FUTURES. BESIDES THESE EVENTS, THE CLOSING OF LAST WEEK AT 5890 WILL ALSO INFLUENCE NIFTY TO CLOSE BELOW IT SO THAT THERE ARE THREE CONSECUTIVE WEEKS OF NEGATIVE CLOSINGS THAT WILL GREATLY  HONOR THE DEADLY BEARISH ENGULFING CANDLE FORMED FOR THE WEEK ENDING 12TH NOVEMBER. INTERESTINGLY IT WILL BE THE FIRST TIME AFTER JANUARY THIS YEAR WHEN NIFTY WILL  HAVE THREE CONSECUTIVE WEEKS OF NEGATIVE CLOSINGS. WELL, WILL THIS 3 WEEKS OF CONSECUTIVE NEGATIVE CLOSINGS HAVE A SIMILAR BURST OF SHARP UP MOVE AS WAS FOR NINE WEEKS IN A ROW FROM FEBRUARY THIS YEAR  TILL EARLY APRIL? WELL, TIME ONLY WILL SAY, BUT MARKETS ARE DEFINITELY LOOKING OVERSOLD FOR A SHARP BOUNCE  & MORE THE DELAY THE SHARPER WILL BE THE BOUNCE.