A Day in the Life - Nifty Future August 1

Overnight the Dow had lost some 200 points, the solar eclipse keeping astrology followers forlorn, the mood was decidedly bearish, after traders woke up to a -70 Singapore Nifty future. Watching the Singapore Nifty future has become a kind of morning ritual for Indian traders and today was no different. As said earlier, today was expected to be a deciding factor in the Nifty and its future. Some consolidation and then a decisive move.

Lo and behold, a gap down, and a crack of 4275, made me think that the trendline was broken and we would be heading for the bearish case. It is then AP said that 4235 was a sort of a gap fill and could be a good support. It could be a time to go long.

Nifty future unfolded itself at the bottom with a higher low, and from then onward we just had a five wave motive wave on the 5-minute chart. I have said that 4440 was an important point. This is because somewhere here, the downtrend from the 6600 tops can be cracked and would be the first sign of some recovery for bulls.

All in all, the day was one massive bull play. Shorts were covered and new shorts were 'raped' as some of my friends like to describe it. Every singe bull investment was paying off. There were no major retracements and one had to just take a bull position and rake in the moolah.

Monday appears to have similar overtones. We have a down Dow and Nasdaq, and conditions appear mildly bearish. May be some refraction from the overzealous passion of August 1. Nonetheless, if 4530 is cracked up, we seem to be getting to 4880.