TURNING POINTS FOR 17.08.2010

NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
CRITICAL LEVELS:

LEVEL 1: 5365, LEVEL 2: 5225, LEVEL 3: 4800
NIFTY FUTURE :

In the early trading, Nifty Future made a high of 5474 and met with resistance. Thereafter it continued to make lower tops/lower bottoms on the the 30 min chart (though marginally) and in the second half, fell sharply to make a low of 5393. On the EOD chart, it has made a lower top/lower bottom. The fall will accelerate once Nifty Future closes below 5350 - low held for 5 weeks. In such an event, it would be below the median level of the Andrew's Pitchfork shown in Red colour on the EOD chart. Once the fall precipitates below 5350, we can compare the current phase of Nifty Future to a car which has wide turning radius and hence rquiring more space and time.

For tomorrow, I would continue to suggest that avoid going long as Nifty Future has encountered resistance at 5480 levels on 30 min chart for nearly 6 times.

Short position may be taken below 5400 levels, with stop loss of 5455. At lower levels, Nifty Future will find support at 5365 and 5325. At 5325 level, it may consider a bounce, in view of support of Andrew's Pitchfork - shown in magenta colour and 25% retracement level on the EOD chart. On the EOD chart MACD (4) & RSI (52) are weak, and once they go below zero and 50 respectively, the weakness will accelerate.

Put Call Ratio of Index options increased to 1.35 as against 1.14 on the previous trading day.

Please do not trade without STOP LOSS.

With Best Wishes,

Ketan Asher.