NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE:
In today's trading Nifty Future opened strong and continued its upward march with higher top/higher bottom on the 30 min chart. For those readers who are academically inclined in knowing the arithmetic for today's top of 5777 - the maths is as follows:
On weekly chart Top of 5398
Less: Bottom of 4786 + (612 X 1.618 =) 990.22 = 5776.22 Days top 5777
(Not bad I guess)
Secondly, in my weekly post I had indicated that Nifty Future can go up to 5785 i.e. upper trend line of Andrew's Pitchfork could be the next resistance level, not knowing that it will be achieved on the first day of the week.
It seems the Nifty Future is fired on all cylinders and there is no looking back. In normal situation, the level referred above would provide strong resistance, but considering today's up move I would not say the same as yet. Hence please do not take this as an advise to go short. I am reminded of the market prior to Jan 2008 when the mood was very similar to today (If I recall right, that time it was known as "India Shining"). Add to the current mood, Reliance doing the catch up act as it has under performed the Nifty by a good margin and you will know why I am suggesting don't preempt the top. However for this to happen, Reliance has to cross above 1051.
Whether to create fresh long positions now is an individual choice, but existing long positions will do well to trail the position with stop loss of 5725. Short positions should be avoided at least for tomorrow - till the market gives some indication of weakness.
Put Call Ratio of Index Options reduced to 1.02 as against 1.28 on the previous trading day.
Please do not trade without stop loss.
With Best Wishes,
Ketan Asher.
P.S. :
1. Delay in writing this post is regretted.
2. I will urge to all those who have not yet rquested for the 'Simple Trading Idea' to send me an email so that I can send the pdf file to them. I am sure those who are following it on Nifty Future and Bank Nifty Future must have understood the importance of it. Never under estimate things which are simple and avilable without much difficulty.
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