Monday, March 8, 2010

TURNING POINTS FOR 09.03.2010


NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD

NIFTY FUTURE :
As expected, Nifty Future opened firm and made a high of 5140 and then went sideways. During the middle of the day it made a new high of 5145, but then gave up all the gains to fill up the opening gap and make a low of 5105. Though Nifty Future continues to make higher top and higher bottom on the EOD chart, it should be noted that on the intra-day 30 min chart shows divergence suggesting weakness. Moreover, we have almost reached the resistance zone of 5150 and 5175. With Reliance lacking the strength, long positions should be protected with tight stop loss as below 5100 Nifty Future can get weak.
For tomorrow, i would not advise fresh long positions and the existing long positions should be trailed with Stop Loss of 5100. Short positions can be considered below 5100 with tight stop loss of 5150. On lower side, it will find support at 5075 - 5050 and 4985. Weakness will accelerate below 4980.
Put Call Ratio of Index options decreased to 1.15 as against 1.38 on the previous day.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.

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