NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE:
In today's trading Nifty future seems to have completed its target of .618 correction by making a low of 4823. Having tested this level twice i.e yesterday 4833 and today it did 4823, we can assume that this bottom will hold for some time. As Nifty Future is quite oversold, it can go up to 5060 levels and then come down again.
Tomorrow is a critical day as RBI policy will be announced. Considering double bottom, aggressive traders can create long position with 4820 as a stop loss. Alternatively, one can go long, when Nifty future breaks above 4925 with stop loss of 4880. On higher side it will find resistance at 4960 - 5000 and 5060.
Keeping a worst case target of 4750 on the lower side, this period offers an opportunity to buy good quality stocks for pre budget rally. I have also drawn a rectangle on the EOD chart which shows that we have been range bound - 4500 to 5300 for over 5 months now. Once we are able to break the level of 5300, we should be within striking distance of the previous top of 6336 - hopefully with narrow range days behind us.
Put Call Ratio of Index Options increased to 1 as against 0.92 yesterday.
In view of RBI policy announcements, tomorrow could be a volatile day, so please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.
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