Wednesday, May 19, 2010

TURNING POINTS FOR 20.05.2010


NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE :
In today's trading Nifty Future opened with a big downside gap and could not go above 5019. Thereafter it remained sideways till it came out of the ellipse shown on the 30 min chart. Once out of the ellipse, it had a major fall and Nifty Future made a low of 4901 and closed @ 4923. You will observe on the EOD chart, that Nifty Future having come out of the ellipse has also closed outside it for the first time after over 8 months - which indicates that weakness should accelerate.
For tomorrow, one can go short if Nifty Future pulls back to 4950 with stop loss of 4985. in case of weak opening, one can go short with stop loss of 4930. On lower levels there are various supports as shown on the EOD chart viz. 4850 - 4765 and 4675. Break of 4850 will make Nifty Future quite weak and hence it is advisable to wait for Nifty Future to settle down before venturing a buy. Alternatively, it will be safer to buy June 5000 Call Options when Nifty Future hits lower levels indicated above.
Put Call Ratio of Index Options decreased to 0.93 as against 1.05 yesterday.
While lower levels offer excellent opportunity for delivery based buying, please do not take trading positions - particularly in Futures, without keeping STOP LOSS.
With Best Wishes,
Ketan Asher.

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