NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE:
In Friday's trading Nifty future remained inside very narrow range during the first half of the day. In the second half, it went below 5000 with heavy volumes to make a low of 4972 and close of 4986. The day's close should be considered weak as it is near the low of the day and is below 5000.
For tomorrow fresh selling should be done below 4971 with stop loss of 5010. Nifty Future will find support at 4920 - 4865 and 4800. Breaking of 4787 will signal end of the post election trend which started with lot of euphoria.
It is likely that market can go up to 5070-5080. At this level it would be better to go short with stop loss of 5105. It will be better to concentrate on buying 4900 & 4800 put options although there are only 7 trading days to FNO settlement.
While all the readers may be familiar with Newton's Law and its effect on the market, i feel the impact will get accentuated once Nifty Future breaks 4800 levels. while we are just at the threshold of beginning the down side move, i would advise restrain on the temptation to buy until the market finds it bottom in the coming days.
Just to give you a reference point, i will draw your attention to column C & G in the TP Grid, which are showing Nifty Future level of 3858 as a good support level in the coming weeks and let me remind you that nothing is impossible in this market. For a quick recap, on the EOD chart i have shown arrows indicating the gaps that have to be filled in the times to come.
It continues to surprise me that PCR remains at just 1.04 as against 0.92 on the previous day. The situation was different in the earlier month when PCR used to be over 1.30 for days in a row. The current situation indicates that the traders have become more confident of the sharp recovery and new highs being scaled after every small dip for the last few months, but things could be different this time and the same is not reflected in the PCR as yet.
What ever be the case, make sure you protect your interest with judicious use of STOP LOSS.With Best Wishes,
Ketan Asher.
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