Today, Nifty futures went down considerably (low of 4225) but did not break the low (4202) formed on Friday, Howerver, it closed very near low of the day, suggesting weak opening tomorrow. Nifty future remained above the Trend Line and within the Wedge shown on the chart, giving hope of a bounce from this levels, particularly in the light of F&O settlement few days from now.
In case markets opens with lower gap and remains above 4150, it can still bounce back from this level. At this level buy can be considered with 4125 as the stop loss. Breakout from the wedge can happen tomorrow above 4325 only, but market getting back above 4250 should be considered as positive. Remaining/going short at lower levels (below 4200) is not advisable.
RELIANCE FUTURE: It was the major contributor for Nifty's fall. However, in the process it has completely filled the gap left behind on 18th May Gap open and also retraced 1/3rd. Here again, I have shown a Wedge that could result in a sharp upmove in light of F&O settlement this week.
It is not advisable to go short at this levels. Breakout from the wedge can be expected above 2010. Buy can be considered above 1951 with tomorrow morning's first half hour low as the stop loss.
INFOSYS FUTURE: This still remains one of the stronger stocks amongst the heavy weights. Going short/stop loss for long postions can be considered only below 1725.
It will be advisable to consider new buy positions tomorrow, only after the first 15-20 minutes looking at the trend. Please do not trade without STOP LOSS.
Happy Trading.
Ketan Asher
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