Yesterday Nifty Future continued its downward move after it was not able to move above 4385 level. Being last day of the week it is likely that Nifty Future will take support @ 4200-4220 region and move up. The reason for expecting support are - Trend Line and Fiboncci levels as show in the attached chart. This up move should be considered as a pull back and it is adviable not to carry over the futures poistion over the weekends. On its way up, Nifty Future will find resistance at 4330 and 4385. Buy position should have stop loss of 4198.RELIANCE FUTURE: Reliance has taken support at 1990 and should show a bounce from this level (and help Nifty go up). It can be bought with a stop loss of 1970. It has left the gap unfilled by a few Rupees, which it may try to do today and will offer good opportunity to buy at these levels for a pullback. 2100-2120 will act as the first resistance and there after 2170-2190 will act as hurdle. Yesterday 2010 Call was available for about Rs. 80. If it is available in this region in the opening trades, it will offer a good risk/reward opportunity. Do not purchase too OTM call- just becaus it appears cheap.
INFOSYS FUTURE: Yesterday in the first half, Infosys did show strength but with market going below 4300 it too fell. I would like to repeat that daily candle does indicate buying at lower levels and another importanct point to note is, that it crossed previuos days High and did not go below previous days Low. It can be bough above 1730 with stop loss below yesterday's low of 1696. on upper side it will face resistance at 1760 - 1780 and 1800.
The Test for the market now is - that after a healthy correction we saw during this Week, how much strength it has during the pull back. This will decide whether we will see life below the Trend Line any time soon.
Happy Trading,
Ketan Asher.
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