Thursday, May 6, 2010

TURNING POINTS FOR 07.05.2010


NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD

NIFTY FUTURE :
In today's trading, Nifty Future opened near yesterday's closing level but maintained downward bias to make a new low at 5025 during the mid session. This being a good support level, there was a sharp up move of about 80 points and Nifty Future closed at 5087 - but continued lower bottom lower top, suggesting continued weakness. For tomorrow's trading it is pertinent to note that Reliance has taken support at 1000 levels today and has closed weak for the day. Fall below, 1000 it can take Nifty Future to test the 5025 levels or much lower to test the next majort support at 4940 levels.
One can consider going short below 5070 with stop loss of 5100. On lower side it will find support at 5025 or 4940 which can act as a major support. At this level, long positions can be taken with a tight stop loss of 4920 or 5000 Call Options can be purchased.
On higher levels, 5165 can act as a resistance.
Put Call Ratio of Index Options decreased to 1.02 as against 1.16 yesterday.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.

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