Monday, April 5, 2010

TURNING POINTS FOR 06.04.2010


NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE:
Nifty Future opened today with a gap, but could not muster enough strength to breach the previous high till late in the day, as in last hour of trade it crossed the previous high to make new high at 5373 and also closed @ 5366 - near the high of the day. You will observe in the EOD chart that Nifty Future though up still remains below the trend line being shown for the past few days. Even if this trend line is crossed tomorrow at 5385, we are heading for a major resistance are of 5420 - 5440 shown in the chart as the upper line of the Andrew's Pitchfork. Needless to repeat that we are into 9th consecutive week of rise.
Considering today's close we can expect good opening tomorrow, but buying at higher levels will not be out of danger. It will be better to book some profits at higher levels, even in individual scrips. Existing long positions in Nifty Future should be trailed with stop loss of 5320.
Put Call Ratio of Index Options increased to 1.22 as against 1.19 on the previous day.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.

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