NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE :
On Friday, Nifty Future opened weak, but made a failed attempt to cross the previous high and after mid session had sharp pull back after making a high of 5475 and closed the weak positive @ 5442. On daily chart, it has started making lower bottom lower top - which is a bearish signal. The main cause for this, may be assigned to weakness in Reliance. It has to now trade above 1030 to gain strength. You will observe on the attached 30 min chart that market has retraced 4 times from 5475 to 5485 levels. Further up move seems possible only if Reliance takes support around 1000 levels and gains strength above 1030.
For today one can go short in the opening session with stop loss of 5465. Considering the trend line and 25% retracement level @ 5412 on the EOD chart, short position must be covered. While the possibility of Nifty Future making a high of 5545 is reducing, at this stage it can not be said that the same is ruled out as yet. In case if Nifty Future takes support around 5400 and moves above 5420, one can consider going long with a strict stop loss of 5395. For simplicity, I would say that Nifty Future should be considered weak below 5450 and strong above this level, assuming no new low levels are made.
Weakness in the market will accelerate below 5365.
Put Call Ratio of Index Options reduced to 1.04 as against 1.17 on the previous trading day.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.
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