NIFTY FUTURE EOD NIFTY FUTURE 30 MIN
NIFTY FUTURE:
In the first half of today's trading Nifty Future traded in a narrow range with a bearish bias and after noticing weakness in European markets, it fell almost 75 points in one hour. The European markets were weak as Dubai has delayed (not defaulted) its debt payments. This shook investor confidence and resulted in weakness in global markets and we followed suit. We had last day of F & O settlement, which only added to the volatility. One blessing in disguise is that US markets are closed today.
The positive feature, was that as indicated in the Nifty Future EOD chart, it made a bottom on the trend line and closed above 5000.
For tomorrow, if bearishness is to continue, it is better to go short only if low of 4978 is broken, with a stop loss of 5010. It will find support at 4937 and 4900. Thereafter, it will find support at 4800 levels.
As a matter of abundant caution, It is better to buy Nifty only if it goes above 5075 or on Monday, after the implications of Dubai problem are clear. On higher side Nifty Future will face resistance at 5100 - 5150 and 5185.
While in one day everything looks gloomy, i would like to remind the readers, that if tomorrow Nifty Future closes above 5075, the bullishness can return, since today's correction is not even 1/3 correction from 4534 low and 5139 high, hence it will be too premature to call off the rally.
Put Call ratio of Index options was at 1.20 as against 1.16 yesterday.
Please do not forget to put Stop Loss.
With Best Wishes,
Ketan Asher.
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