TURNING POINTS FOR 05.11.09

Charts: SBI - SAIL - RELIANCE

Charts: MARUTI - ICICI BANK - NIFTY FUTURE EOD

NIFTY FUTURE 30 MIN
NIFTY FUTURE:

As expected, Nifty Future opened higher and steadily moved up to close near the high of the day. Nifty Future made an intra day range of about 130 points and virtually made up for all of yesterday's losses and gave a sigh of relief to the traders & investors. it is pertinent to note that on such days, the up move is partially helped by those who were short yesterday.
At this stage, today's move should be considered as a relief rally, as Nifty future's ability to clear the trend line and 38.2% level @ 4775 and 50% level @ 4850 will be the real test. From these levels, Nifty Future can come down to retest the levels of 4500 and make a double bottom to confirm that the downside is capped or the downside continues. With this in mind, traders and investors who are long should trail the profits.

In all probability, Nifty Future may open with an upside gap and not give an opportunity to make fresh buying. It is advisable not to chase gap open but look for other trades, with the help of Turning Points Grid which is now updated daily. In the event of normal opening, Nifty future may be bought with stop loss of 4650. On higher side 4725 - 4750 - 4775 - 4800 and 4850 will act as hurdles.

It is not advisable to go short, except at the level of 4850, which can act as a major resistance level.
Put Call Ratio of Index Options increased marginally @ 1.04 as against 0.94 on the previous day.

Please do not trade without STOP LOSS.
With Best Wishes,

Ketan Asher.

Words of Wisdom

Wisdom is knowing what to do next,

skill is knowing how to do it,

and virtue is doing it.