TURNING POINTS FOR 18.03.2010

NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD

NIFTY FUTURE :

In today's trading, Nifty Future opened with a gap and crossed the resistance level of 5225 being referred here for the past few days. It made a high of 5271 to touch the trend line shown in the attached chart. I have also drawn a rectangle to show the range of 4500 to 5300 in which Nifty future has been moving for the past 6 months. It is no doubt that once we cross the 5300 levels we should be aiming for the 2008 high of 6336. The moot point is whether we will be able to cross 5300 levels in this attempt? Looking at today's candle on the EOD chart this looks difficult as the candle is like a shooting star - indicating end of rally, subject to confirmation tomorrow.

Tomorrow if Nifty future trades below 5218, it would indicate the first sign of weakness and a good possibility that we may see a correction before we cross 5300 levels.

One can continue long positions with stop loss of 5190 and can go short below 5190 with a stop loss of 5225. On the down side, 5170 and 5120 will provide support.

Put Call Ratio of Index Options decreased to 1.11 as against 1.16.

Whatever may be your view, please do not trade without STOP LOSS.

With Best Wishes,

Ketan Asher.