TURNING POINTS FOR 17.09.09

Charts: SBI - SAIL - RELIANCE

Charts: MARUTI - ICICI BANK - NIFTY FUTURE EOD

NIFTY FUTURE 30 MIN
NIFTY FUTURE :

Finally we are close to Nifty Future @ 5000 and in all likelyhood the target should be achieved tomorrow. On the higher side 5035-40 region can act as a hurdle, hence new buying in nifty future is not advisable.

Existing long position in Nifty future should keep 4920 as a stop loss. Short position should be taken - if Nifty Future goes below 4880 with 4920 as stop loss. Nifty Future will find support @ 4850 - 4810 on the downside.

Put Call Ratio of Index options continues to remain high @ 1.61 as against 1.77 yesterday. I checked the history of PCR form Apr '09 (as provided by nseindia.com) to date and find that we have never reached this level of PCR.

The current market scenario can be compared with a ride in a Giant Wheel. You enjoy the ride when the wheel is going up, you may get scary when at the top - but you take relief that the wheel will soon come down - in our case to fill the gaps left on the charts while going up. In this wheel of Stock Market, you will feel very nice if you have liquidated some stocks at the higher levels.

So enjoy the ride, but keep tight Stop Loss levels for your long positions. My guess is that we may have about 10% of the steam still left in this rally and all may not come next week. Tomorrow can be a big range day and Monday is a market holiday.

With best Wishes,

Ketan Asher.