Thursday, August 26, 2010

TURNING POINTS FOR 27.08.2010


NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
CRITICAL LEVELS:
LEVEL 1: 5400, LEVEL 2: 5225 & LEVEL 3: 5100
NIFTY FUTURE :
In today's trading Nifty future continued its bearish trend and made a high of 5494 and low 5456. In the process, for the 3rd day, it has made a lower top and lower bottom. Though it is still holding the 5450 support, the close for the day is weak.
For tomorrow, Nifty Future may bounce from the support of 5450. If this happens, Nifty Future may go up to 5500-5510 at which level it will face resistance. One can consider going short at this level with stop loss at 5530.
Secondly, tomorrow being a weekly close, the weekly candle will provide guidance for the coming week. Any close below 5450 or thereabouts should be the first signal for the impending bearishness to set in. I will be reviewing the weekly position tomorrow evening or Saturday morning as per the practise started two weeks back.
In view of the above, I do not advise fresh long positions.
Put Call Ratio of Index Options decreased to 1.11 as against 1.29 on the previous day.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.

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