MARKET VIEW FOR 16.7.2009

NIFTY FUTURE:

It crossed all the resistance levels mentioned for today and closed near high of the day, making it almost certain for a strong opening for tomorrow. It is now also above the Neck Line mentioned in special write up posted on last Saturday (11.7.2009). While the steep rise has been accompanied with strong advance decline ratio, it still leaves a bit of doubt about the sustainability of the rise. There is a Trend Line @ 4370 which can act as a major resistance. It will now be important to see where will the correction to this up move stop on the downside, as that will start the process of higher bottom formation. We are still forming lower Top and Lower Bottom, which remains a bearish setup.

Tomorrow, 4282 - 4310 - 4330 and 4370 will be resistance levels. In case of gap up opening, break below 4250 should be considered as first sign of weakness. Below 4190 bearishness can accelerate and 4130 will act as support level. As a contrarian play at 4330 - 4350 one should buy 4200 Put or sell Future @ 4330 and buy 4400 Call. It is not advisable to sell naked future however strong the conviction be.

Lot of volatility can be expected in the next two days, since the market is at a point, where bears will get good opportunity to create short positions at higher levels and Bulls have to make one more push to take it to the higher level.

Please do not trade without STOP LOSS or a hedged position.
With Best Wishes.

Ketan Asher.
IMPORTANT NOTE:

Effective today i will be giving Nifty Future EOD chart and a brief view on it. I will also give about 5 charts with my noting on it as regards the support and resistance levels. The figures marked with degrees of Sq of 9 act as support and resistance levels. Whenever specific action - buy or sell is advisable, i will mention the same on the charts.

As the objective of this blog is educational, i do not expect the readers to take position in the markets based on this charts. However if some readers choose to take action based on this charts, they must hedge their position and understand the risk associated with such action. It is advisable that the reader uses this information to understand the turning points and also the risks associated with the markets.

Feedback on this change, from regular readers will be of great help. You may either put your comments in the comments box or send a mail.