NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE :
In today's trading, Nifty Future opened firm and made a new 52 Week High of 5400 - but suddenly lost the momentum after the May 2010 turned out to be lower than expected. The correction went down to make a low of 5356. At this stage out would like to highlight that the correction ended for Nifty Spot just above the Friday's high and hence Nifty Future did show marginal improvement to close at 5381. You will observe from the EOD chart that, Nifty Future has closed outside the ellipse and also above the neck line.
Tomorrow by the time market opens for trading, Infosys quarterly results would be known to the market participants and a lot for the market would depend on the results and the management discussion thereafter. The dampener for the market remains, non participation of Reliance.
For tomorrow, I would continue to advise long position with stop loss of 5320. At higher levels 5420- 5440 range could act as a major resistance. In today's EOD chart, I have also shown the upper level of the Andrew's Pitchfork (in magenta colour) which should be considered as the target for the coming days. This coupled with Gann turn date of 23rd July, should be closely watched.
Short position should be taken below 5320 with stop loss of 5350.
Put Call Ratio of Index options increased to 1.21 (indicating cautious approach) as against 0.95 on the previous trading day.
I would like to remind the readers, that though I had shown pattern target of 5770 yesterday, this could fail due to change in circumstances (read poor results/guidance by leading companies). In that event, Nifty Future below the neck line will indicate failed pattern resulting in low below 4786. In light of this possibilty, it would be prudent to carry out delivery based selling at higher levels, so that we are ready to buy at lower levels - should the opportunity arise. I would closely watch the level of 5545 and 23rd July.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.
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