Sunday, December 6, 2009

TURNING POINTS FOR 07.12.2009


NIFTY FUTURE EOD / NIFTY FUTURE 30 MIN

NIFTY FUTURE:
In Friday's trading Nifty Future opened weak and made a low of 5085 and thereafter went up to 5169 and in the second half made a new low of 5078 and closed at 5116. It has started the process of forming lower top and lower bottom and there by suggesting weakness. Even the candles on EOD chart do not enthuse confidence to go long, unless market corrects a bit and regains strength. It is important to note that the same situation is faced with Dow as it is not able to cross 10500 levels despite making 5 attempts.
In view of the above, it will be better to be cautious so far as long positions are concerned. Tomorrow, new short position should be taken below 5070 with stop loss of 5105. It will find support @ 5040 and 5000. The support thereafter @ 4950 should be considered strong as it would have filled a gap left some days back. It would be better to buy Nifty Future near 4950 levels with stop loss of 4900.
On higher side Nifty Future will gain strength above 5150 and it will be better not to remain short above this level.
Put Call Ratio of Index Options was at 1.11 as against 1.18 on previous trading day.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher

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