NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE :
In today's trading, Nifty Future opened with a gap and continued its upward surge to make a high of 5378 and closed at 5358. Premium in Nifty Future reduced to just 5 points at the end of the day, as against 12 points while at the peak of the day. Other important observations for today's trading are :
1. Reliance did not participate in the up move - this does not augur well for the sustainability of the up move. However, we must wait for one more day for this to change.
2. Infosys is at a level which it has done twice before. Now is the third time. If it does not enter the new territory and instead turns around to lower levels - the fall could be quite sharp - Not to miss the 2246 level printed on the Infosys futures EOD Chart.
3. We are close to the ellipse curve mentioned yesterday in detail. Moreover, 5420 can still be a tough level to cross.
While what is stated above is a dampener to an otherwise good rally, we must be open to the possibility of Nifty Future coming down from these levels and plan our strategy accordingly.
For the reasons stated above, I would not advise fresh long positions and continue to sell profitable long positions. Existing long positions should be trailed with stop loss of 5340.
Short position should be taken up below 5325 with stop loss of 5350. At lower levels, it will find support at 5290 - by filling the gap left in the opening session today.
With FNO settlement round the corner, put call ratio of Index Options reduced to 1.07 as against 1.29 on the previous trading day.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.
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