Monday, February 8, 2010

TURNING POINTS FOR 09.02.2010


NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD

NIFTY FUTURE:
In today's trading Nifty Future made a new low as well as new high compared to the previous two days. As many of you must be aware, 200 SMA is at 4659 where as Nifty Future made a bottom at 4667 and then made a sharp up move to make a high of 4807. Due to intra day profit taking Nifty Future closed at 4765, but EOD candle keeps the hopes of further up move alive.
For tomorrow's trading one can buy Nifty Future with a stop loss of 4720. It will find resistance at 4810 and 4850, which will be little tough to cross in the first attempt and there is a possibility that market may retrace a bit, before gathering enough steam to go further up. Once these levels are crossed, 4920 should be considered as a major hurdle. You will know how all these points are arrived at, if you spare sometime to see the charts.
From today's sharp up move, I feel my upward bias seems to be right and hence going short at these levels is not advisable. I would hasten to add, that we are still not out of the woods and hence trading positions must be protected with a tight STOP LOSS. Market follows the same logic like a snake and ladder game, where going up is much harder then coming down.
Put Call Ratio of Index Options remains almost unchanged at 1.04 as against 1.03 on the previous day.
With Best Wishes,
Ketan Asher.

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