Sunday, September 5, 2010

TURNING POINTS FOR 06.09.2010


NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE:
On last Friday's trading Nifty Future made lower top (5500) and lower bottom (5471) - first time after the sharp up move from the 5356 levels. However, Monday's trading (at least the opening session) may be influenced by the up move in US markets.
As the lower top/lower bottom on the weekly chart indicates downward bias, I would remain cautious and avoid participating in the up move - if any. Moreover, last two days EOD candle for Sensex/Nifty Spot both have long upper shadow - suggesting caution at higher levels.
On the attached 30 min chart, I have shown a flag pattern - though not perfect. Looking at this pattern, if one is tempted to take a long position, I would suggest that it would be better to go long only when Nifty Future moves above 5515 - with a strict stop loss of 5480) for an eventual pattern target of 5600 - with a hurdle around the previous top of 5545.
Existing long positions may be held with a stop loss of 5460. Fresh short positions may be taken below 5430 with a stop loss of 5450.
Put Call Ratio of Index Options increased to 1.28 as against 1.15 on the previous trading day.
Please do not trade without STOP LOSS.
With Best Wishes,
Ketan Asher.

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