NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
To read weekly review and the chart, please refer to the post below. Henceforth, it would be my endeavour to post a weekly Nifty Future chart with brief commentary latest by Saturday evening. Trust this helps the readers.
CRITICAL LEVELS:
LEVEL 1: 5365, LEVEL 2: 5225, LEVEL 3: 4800
NIFTY FUTURE:
On Friday, Nifty Future continued its up move and found resistance at the Trend Line as anticipated. You will observe on the 30 min chart, that 5480 level has acted as resistance on 5 occasions. It definitely indicates that this region is a strong resistance level which Nifty Future is not able to cross. As we remain outside of the Rising Wedge, my view continues to remain cautious/bearish - even at the risk of being proved wrong, should Reliance go above 1000. On the higher side, we have to contend with resistance at 5515 and major resistance at 5545. Please refer to the Pitchfork drawn on the EOD chart to find why we got support at 5363 last week.
For tomorrow, I would not advise fresh long position at higher levels.
Short position should be taken only below 5420 with stop loss of 5450. On downside it will find support at 5365 (we may not be second time lucky) - 5315 and 5225.
I would like to mention here that Bank Nifty is close to its previous top of 10806. This being a double top is a good signal for it to correct. The reasons for correction always develop little after these technical events take place. Hence this remark of caution, so that at first signal one can jump to safety.
Put Call Ratio of Index Option remained almost flat at 1.14 as against 1.11 on the previous trading day.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.
I feel you are correct @100%
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