Charts : SBI -SAIL - RELIANCE
Charts: MARUTI - ICICI BANK - NIFTY FUTURE EOD
NIFTY FUTURE 30 MIN
NIFTY FUTURE:
Today was one more narrow trading range day, when Nifty Future traded within yesterday's range - may be due to lack of any triggers for moving decisively on either side. The highlight for today's trading was INFOSYS making a new all time High/52 Week High and also closing above the earlier high, thereby confirming that all is not lost for the bulls. I find it difficult to believe that when Infosys makes a new all time high/52 Week High, the market is going to tank the next day. Another interesting feature - once again a case for bulls, is the 'pennant' pattern in Bank Nifty as well as in SBI. I guess this is enough for the Bull case.
Tomorrow, if Nifty goes below 5000, it may create panic like situation as all are aware of this logical support. However, please note that on the EOD chart there is Trend Line Support @ 4970 which can act as a support/trigger for a sharp up move in light of the above 2 factors going in favour of Bulls.
Although one can go short below this level with stop loss of 5045, and if Nifty Future is found taking support @ 4970 levels one should be quick to book profits. On lower levels 4950 and 4900 will also provide support.
Just like today, it is better to keep the buy position trigger above 5085 with stop loss of 5040. On higher side, it will face resistance @ 5100 - 5150 and 5185.
Put Call Ration of Index Options was at 1.50 as against 1.22 yesterday, may be because of narrow trading range and traders trying to protect their long positions, by buying Nifty puts.
Whether you agree with the above analysis or not, please do not trade without appropriate STOP LOSS levels.
With Best Wishes,
Ketan Asher.
Words of Wisdom
The direction we are facing,
has a lot to do with our destination.
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