TURNING POINTS FOR 26.10.09

Charts: SBI - SAIL - RELIANCE

Charts: MARUTI - ICICI BANK - NIFTY FUTURE EOD

NIFTY FUTURE 30 MIN
NIFTY FUTURE:

In Friday's trading, Nifty Future opened on higher side and went sideways. In the second half it
came down (but not lower than previous day) due to negative news in Reliance. Fall in Reliance was offset by Infosys and ITC (due to good results). At the close Nifty Future is at a critical juncture i.e. on the trend line and just managed to close @ 5008 levels.

Reliance has couple of supports near 2040 levels and i don't think it will break this level. Moreover, we have RBI meet on 27th and FNO settlement on Thursday. With so many events and good support from FMCG, Banks & IT it is unlikely that market would tank.

With US markets in the red, it is quite likely that we may have a weak opening session. In that event, Nifty Future has very good support @ 4900 levels (as shown in Nifty Future EOD and 30 Min charts) and one can consider buying @ 4925 levels with 4900 as stop loss level.

On higher side one can consider buying Nifty Future above 5045 with 5000 as Stop Loss. On way up it will find resistance at 5065 & 5100. Above 5100 it is not advisable to remain short.
Put Call Ratio of Index Options was @ 1.12 as against 1.23 on the previous day.

In view of the various contradictions stated above, be prepared for a choppy market and one would be better off dealing in Options alone.

Please do not trade without STOP LOSS.

With Best Wishes,

Ketan Asher.

Words of Wisdom
Any one can become angry - that's easy.

But to be angry with the right person, to the right degree,

at the right time, for the right purpose and in the right way - that is not easy.