TURNING POINTS FOR 10.11.2009

Charts: SBI - SAIL - RELIANCE

Charts : MARUTI - ICICI BANK - NIFTY FUTURE EOD

NIFTY FUTURE 30 MIN
NIFTY FUTURE:

In today's trading, Nifty Future opened flat and went down till 4780 and in the second half of the day went up to cross 4850 and closed near the top of the day. We are now close to a major hurdle at 4925, but the fact that at the time of writing this post, Dow has made a new 52 week high, which should definitely improve the sentiment in our markets too. In this euphoria, if we manage to close above 4920, it will open the possibility of a new top in the coming days. However, I would like to caution that, relatively speaking, we are much ahead of US markets (and so is our economy) and they are just catching up. If we compare the current indices with those on 1.1.2009, the position is as follows:

As on 1.1.2009 As on 9.11.2009

Nifty Future 2989 4903 64 % up

Dow 8772 10170 16 % up

In tomorrows trading, if there is a Gap up opening, buying should be avoided. If Nifty Future gradually moves up, one should buy above 4925 with a Stop Loss of 4890. Existing Long position must be trailed with Stop Loss of 4865. On higher side Nifty Future will find resistance at 4935 & 4965.

If after a Gap up opening Nifty future goes below 4900 one can go short with stop loss as top of the day. It will find support @ 4865 & 4835 and weakness will accelerate below 4800, to find support at 4735. In light of what is stated in para 1, this looks to be a remote possibility.
Put Call Ratio of Index Options was marginally lower at 1.36 as against 1.43.
With Best Wishes,

Ketan Asher.

PS: Hope u are following the TURNING POINTS GRID given in the following post.

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