NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD / NIFTY FUTURE QUARTERLY
NIFTY FUTURE :
In sympathy with US markets, Nifty Future too opened with down side gap and made a low of 5225, but quickly moved above yesterday's low and maintained steady up move during the first half of the day and at 5299 found trend line resistance and sharply corrected about 30 points and as European markets were steady, once again started moving up to make a day's high of 5323 and closed near high of the day at 5316.
you will recall my yesterday's post wherein I had anticipated such a move by giving the rationale, that today is a monthly/quarterly close. In hindsight, it seems the argument had some merit. I have attached a Quarterly chart to give a broader perspective, wherein you will observe that for the past three quarters there has been consistent buying at lower levels and market is poised to break out of the 5400 hurdle in the coming days. When that will happen may be difficult to predict (may be once out of the ellipse ?), but the quarterly chart definitely indicates strength.
Though the quarterly chart looks very exciting, I would like to caution that till such time we see close above 5420, we need to be prepared for down side - which as per the same quarterly chart can come up to 4825 (Trend line joining the lows of 3 quarters). Please do remember that it will take 3 more months to form the next candle.
Tomorrow, fresh long position should be taken only above 5335 with stop loss of 5290. On higher side, it will find resistance at 5365 and major hurdle at 5420.
Short position should be taken only below 5265 with stop loss of 5300. On down side, it will find support at 5220 and 5165.
Put Call Ratio of Index Options decreased to 1.06 as against 1.11 yesterday.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.
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