Wednesday, July 28, 2010

TURNING POINTS FOR 29.07.2010


NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD

NIFTY FUTURE :
Though in today's trading Nifty Future opened steady, it refused to go up any further - despite good results (highest profits in last 10 quarters) declared by Reliance. As such Reliance itself led the weakness and in the 2nd half, Nifty Future precipitated to make a low of 5385 and closed at 5394.
Not only Nifty Future closed near the low of the day, it has also closed below the trend line shown on the EOD chart - suggesting weakness. Although this indicates that Nifty Future is ready to go down, I would like to caution that tomorrow is FNO settlement day and Reliance has multiple supports around 1020 level. Should Reliance surprise tomorrow on the up side, it could take Nifty Future up on account of short covering.
Nifty Future has good support at 5350 levels and hence I would suggest buying at these levels with stop loss of 5325. On higher side, Nifty Future will find resistance at 5425 - 5440 and 5460. It is advisable not to remain short, if Nifty Future moves above 5460.
For the reasons stated above, I would not advise going short at lower levels tomorrow. Moreover, being FNO settlement day volatility would be higher.
Put Call Ratio of Index Options decreased to 1.07 as against 1.17 yesterday.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.

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