NIFTY FUTURE 20 MIN / NIFTY FUTURE EOD
NIFTY FUTURE :
In Friday's trading Nifty Future opened steady and made a low of 5371 and in the second half remained firm and even made a high of 5405 and closed at 5398. It is pertinent to note that weakness in Reliance continues to remain the main reason for lack lustre performance of Nifty future.
After the close of our markets, US markets have closed very weak and this can be a good reason for our markets to open gap down. However, I would like to advise not to panic even if 5355 is broken, as we have support around 5320 - 5340, in the form of a trend line. In case this is breached, 5300 will act as a support since it is the cusp of the Ellipse being shown on the EOD chart. In view of these multiple supports, we can expect a bounce back which could act as a pleasant surprise. Please do not go short in case Nifty Future opens with a down side gap.
Tomorrow, in case of a gap down open as discussed above, one can consider going long near 5320 levels with stop loss of 5290. On the way up 5365 and 5405 will act as resistance levels.
Put Call Ratio of Index Options decreased to 1.22 as against 1.28 on the previous day.
Please do not trade without STOP LOSS, as my optimism may not be shared by the market.
With Best Wishes,
Ketan Asher.
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