NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
CRITICAL LEVELS:
LEVEL 1: 5365, LEVEL 2: 5225 AND LEVEL 3: 4800
NIFTY FUTURE:
Though Nifty Future closed yesterday near the high of the day, it opened weaker this morning and make a high of 5475 and after the mid session remained weak to make a low of 5440. Thereafter, it once again made an attempt to go up to close at 5461. In today's trading Nifty Future did break the Trend Line drawn on the EOD chart, but has closed above it, this still leaving hopes for the bulls. Today's price action did confirm my belief that though Nifty Future is making new tops, it is not able to sustain at higher levels and hence my suggestion of not going long at higher levels.
While today, Nifty future has taken support on the Trend Line, we must factor that weakness in Reliance continues to make lower bottom / lower top. We now have to contend with likely weakness in Infosys once it breaks the trend line on the down side at 2800 - in view of all the wrong news coming from USA about Indian IT Cos. Weakness in these two heavy weights is bound to have negative effect on Nifty Future.
Accordingly, I would not advise fresh long position and those having existing long positions must have a tight stop loss of 5440.
Short position may be taken below 5440 with stop loss of 5475. On lower side, it will find support at 5420 - 5400 and 5365.
Put Call Ratio of Index options continues to increase and at the close of the day it was 1.22 as against 1.16 yesterday.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.
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