Monday, May 10, 2010

TURNING POINTS FOR 11.05.2010


NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE :
On the back of stimulus package announced by EU over the weekend - Nifty Future opened with a gap and with adv/decline ratio in the region of 9:1, maintained steady rise throughout the day (up 3.50%), with day's high @ 5208 and close @ 5200 - near the high of the day. Considering today's close and sharp rise in US markets, we can expect strong opening tomorrow. Long positions can be taken with 5170 as a stop loss. On higher side, 5240 and 5300 will act as resistance levels.
Considering the sharp rally, selling should be avoided for now. Once we have a close above 5300, we have to consider the next resistance only at 5420 and 5500.
Put Call Ratio of Index Options remained almost unchanged at 1.05 as against 1.06 on the previous trading day.
Please do not trade without Stop Loss.
With Best Wishes,
Ketan Asher.
PS: It is heartening to see a sharp rally, particularly when we were trying to find the bottom levels. We should not forget the fact that these rallies are purely based on the stimulus packages given by the Govts. While all are busy enjoying the rally, i don't think any one cares about the long term economic implications of these actions. What is important for us as traders/investors is to encash the profits from time to time and be selective of the Companies you ride in this rally. Don't fight the markets - ride it.

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