The last 2 working days in markets showed reversed trend than everybody were predicting to be, after watching Headlines in Newspapers, even on day of expiry. This happens not quite often and everyone is taken a-back by market moves. Markets always out-smart the market participants.
The markets have shown bullishness on Thursday - the day of expiry of June'13. Now July '13 expiry has opened auguring well for month as well, by Gap-Up-Open. When such gap remains on Daily chart, it shows strength of the move, especially when it's a Bull-Day as well. By Bull-Day, i mean Close is above High and not the Close is above Previous Close.
Based on studies of Gaps, the Nifty is poised to cross 6025 mark, without filling the gap, which acts as Stop-Loss for Nifty at 5700 appx. SBI normally leads Bank Nifty, which ultimately leads Nifty, which has not been this time. So the rally is by other pivotals like Reliance and Infosys, which have been dormant so far. With aide of SBI again above 1985, markets may be expected to achieve above target soon.
But the ride may not be that smooth, if SBI does not fare as expected. In such case, markets may plunge a bit, not causing damage to averages and start up-move by next week-end. In any case, the worst is over as of now and markets may be looked upon with positive mood upside. We shall review the markets again next week and shall come up with new observations.
The markets have shown bullishness on Thursday - the day of expiry of June'13. Now July '13 expiry has opened auguring well for month as well, by Gap-Up-Open. When such gap remains on Daily chart, it shows strength of the move, especially when it's a Bull-Day as well. By Bull-Day, i mean Close is above High and not the Close is above Previous Close.
Based on studies of Gaps, the Nifty is poised to cross 6025 mark, without filling the gap, which acts as Stop-Loss for Nifty at 5700 appx. SBI normally leads Bank Nifty, which ultimately leads Nifty, which has not been this time. So the rally is by other pivotals like Reliance and Infosys, which have been dormant so far. With aide of SBI again above 1985, markets may be expected to achieve above target soon.
But the ride may not be that smooth, if SBI does not fare as expected. In such case, markets may plunge a bit, not causing damage to averages and start up-move by next week-end. In any case, the worst is over as of now and markets may be looked upon with positive mood upside. We shall review the markets again next week and shall come up with new observations.
