TURNING POINTS FOR 09.09.2010

NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD

NIFTY FUTURE :

In view of weak Global cues, Nifty Future opened below yesterday's low and made the day's low at 5566 and then continued to move up to make a new high of 5624. In the second half, it gave up the gains but did not break the low made in the opening session and closed the day at 5597. It is typical of the current rally, where Nifty Future makes a new high but gives up the gains - thus leaving upper shadow on the EOD candle. On the EOD chart you will observe that, day's high is near the up trending channel and the EOD candle did not break the trend line (in magenta).

In view of the above, guidance for tomorrow remains the same as today, keep trailing stop loss at 5560 and avoid fresh buying at higher levels - if you can. It will be better to keep a watch on Reliance - if it moves above 973 it will provide good support to Nifty Future on the upside.

Short position may be taken below 5560 with stop loss of 5600. On the down side, it will find support at 5525 and 5500. Please note that for our market, tomorrow is the last trading day of the week in view of long weekend. Close above 5570 should be considered positive for the next week.

Put Call Ratio of Index Options marginally decreased to 1.16 as against 1.25 yesterday.

Market has a mind of its own and it can test our patience - so please do not trade without STOP LOSS.

With Best Wishes,

Ketan Asher.