NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE :
In today's trade Nifty Future opened weak and made a low of 5375 and thereafter steadily moved up. In the second half it started showing strength and finally managed to cross 5420 and made a high of 5459 and closed at 5454. My observations of the upmove finally materialising (without participation from Reliance) are as follows;
1. While Nifty Future managed to make a new high - as the premium over spot increased significantly, BSE Sensex did not make a new high. Well, it can do a new top tomorrow.
2. Considering above 2% increase in DOW, we can be fairly sure of a gap opening tomorrow and consequently a new high - that too on the Gann turn date as is being mentioned in my post for the past few days. Markets have a habit of making a climax top on such dates.
3. With new high in place, in the EOD chart negative divergence is appearing which suggest caution at higher levels.
In view of the above, while it will be good to ride the trend - we should not throw caution to the winds and it is always prudent to book some profit at higher levels and to say the least - avoid making new purchases at higher levels.
For tomorrow, one can go long (but not in case of gap open) with stop loss of 5415. At higher levels, it will find resistance at 5470 - 5515 - 5545 and 5570 (Pitchfork level shown in EOD chart in magenta colour).
Short positions should be considered only below 5400.
Put Call Ratio of Index Options increased to 1.05 as against 0.96 yesterday.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.
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